Answering your business bank account questions
Do you need a dedicated bank account just for your business?
If you are setting your business up as a limited company, you are required by law to have a dedicated business bank account.
Although it might seem unnecessary in the early stages of running a business, setting up a dedicated bank account for your business will remove many of the everyday difficulties that can make maintaining accurate accounts such a complicated and time-consuming task. In addition to a variety of other tools and services, by opening a business bank account, you will find it easy to keep track of:
- Overall available balances
- Money owed to the business
- Up-to-date employee payroll information
- Money your business owes to any creditors
Compare the best business banks in the UK
Finding the right bank account for your business is crucial to keeping on top of your finances. A lot of banks have excellent introductory offers that can provide real value for your business. But, ou should consider your business needs in the long-term. This will help you to decide which account will benefit your business and help you grow. You can read more about the best business bank accounts in the UK and key things you need to think about before opening a bank account for your business, including:
- How easy it is to switch
- Online banking facilities
- Fees and costs involved
- Easy integration with your accounting software
- Multi-currency facilities
How do you open a business bank account in the UK?
If you fit the criteria outlined by your provider, setting up a business account in the UK is fairly straightforward. In short, you should have the following details to hand:
- Business address
- Contact information, including a current telephone number
- Companies House registration number (if you are a limited company or partnership)
- Estimated annual turnover
It is also worth noting that you may also need to provide evidence of your personal financial circumstances in verifying that you have a clean banking and credit history. We’ve gone into more detail about things you need to open a company bank account in this article.
When do you need more than one business account?
As a business owner, you can sometimes find it challenging to keep tabs on just how much money the company is holding and what your immediate business commitments are. One solution is to consider the possibility of having more than one business account with the same, or different banks. Typically, you will have a current account and a savings or reserve account. This is useful sometimes, but it doesn’t give you the same amount of control that two independent accounts can. It is a question of what’s best for your business and how you prefer to organise your business finances.
Multi-currency bank accounts for business
For businesses dealing with various currencies, a multi-currency bank account can be useful. If your business operates across several countries and uses different currencies, a multi-currency bank account will be invaluable in mitigating fees for foreign currency exchange. Every bank will offer something slightly different, such as varied interest rates, different charging structures, and linked benefits such as savings accounts or overdrafts.
Here we take a look at how these accounts work and who they might benefit.
What is online business banking?
Online business banking is a type of company account that you manage via the internet. Online banking providers offer many of the same services as traditional company banking, but with no branches. You can track transactions and make payments using your web browser or a mobile business banking app instead.
This brings several benefits over traditional providers – including increased transparency and flexibility. But online business accounts still come with some notable limitations, which is why more and more companies are using prepaid providers such as Soldo to enhance their functionality.
Which business account is best?
When trying to find the best online business banking account for your needs, you’ll want to pay attention to which fees and charges you might have to pay, which perks you can get and whether there’s a free introductory period. Most providers offer similar functionality.
Soldo brings extra functionality to your business account that enables you to do more: including real-time tracking, automated expenses and siloed spending.
Is Soldo a bank account?
Soldo provides online expense accounts that sit alongside your business bank account, instead of replacing it. You can use your Soldo cards to silo staff spending from your main company funds, as well as accessing powerful new features that aren’t available with any banking provider.
Who can apply for an online business bank account?
Any company can apply for an online business bank account. You’ll probably need to provide documents such as ID and proof of address for every company director, your Companies House number and possibly proof of your financial situation. If your account includes a credit facility then you may have to pass a credit check.
How do I switch online accounts?
You’ll need to apply with a new provider and let them know that you’re moving from an existing business account. Your new and old providers should then communicate and let you choose your switchover date.
If you’re moving because you’re frustrated with your current provider, then you may want to consider enhancing your account with Soldo instead. Learn more about how we can help improve your business banking.