Business bank accounts, supercharged

A business bank account is more than somewhere to keep company money. With Soldo, it becomes a powerful way to manage it, too.

Business bank accounts: what are they?

A business bank account keeps business finances separate from personal ones, and helps you manage cash flow and calculate tax liabilities along the way. It works the same way as a personal bank account, but often includes a few additional features, such as a personal advisor and tailored introductory offers.

Business bank accounts work hand in hand with multi-user accounts like Soldo. Platforms like these enable you to give team members access to their own funds, without giving them access to the business bank account itself. Just transfer as much money as they need, and then capture their transaction data for simpler reconciliation and reporting.

Why is a business bank account important?

With a business bank account, you’re able to:

  • Buy what you need, pay those you owe and receive client payments
  • Separate business expenses from personal ones
  • Gain access to benefits not open to personal account holders
  • File taxes more accurately and identify deductible expenses

You’re also able to order credit or debit cards, which you give to individual members of staff. But in doing so, you’re giving them unrestricted access to company funds, which is why you need to be careful who you decide to share them with.

Soldo cards are a better alternative to corporate credit cards. Like credit and debit cards, they give employees the flexibility to buy what they need. But unlike credit and debit cards, they aren’t linked to the company account, which means you can safely allocate as many as you like and decide how much money each cardholder has access to.

The best business bank accounts – What should I expect?

  • Personal support
    As a business customer, you’ll be put in touch with a dedicated support team who will guide you through the bank’s services. They’ll be able to offer advice as your needs change, and may offer personalised offers as your business grows.
  • Low charges
    You need to pay a monthly fee for your business bank account. Cheapers account are usually around £5 a month – but you’ll want to shop around for the best package for you.
  • A fee-free introductory period
    Many banks won’t charge you for the first year or so after opening your account. Just be sure to do your research on what the fees will look like once this period is over. It can be difficult to change accounts further down the line.

But it’s only with digital tools like Soldo that you can really make the most of your business bank account – even the ones that come with all the bells and whistles.

With Soldo’s payment control console, you can transfer funds for free, check spending in real time and export transaction data to accounting software. And if you deal with overseas clients, you can make foreign currency transfers with low, competitive fees.

Frequently asked questions

Who can apply for a business bank account?
You’re eligible to apply for a business bank account if you run a business – or even a charity, club or pension fund.

But if you run a limited company, you’re legally required to set one up. This isn’t the case if you’re a sole trader or freelancer, though it is still advisable as it will make it easier to keep your personal and business finances separate.

How do I open a business bank account in the UK?
Opening a business bank account is simple. Most banks will let you get the process underway online, and once you’ve done as much as you can, you’ll be able to arrange a meeting with a representative to complete the process in-branch.
What do I need to open a business bank account?
If you’re opening a business bank account, you’ll need a variety of documents to hand, including:

  • ID for all named company directors
  • Proof of address
  • Full business address
  • Contact details
  • Credit score
  • Estimated annual turnover

If you’re a limited company, you’ll also need to provide your Companies House registration number.

Is it easy to switch business bank accounts?
It depends on the banks you are switching from and to, but they’ll do their best to make the experience as painless as possible. Of course, the bigger your business is, and the more tangled its accounting, the longer it will take.

That said, it’s always wise to check your deal against the market and see if there’s something better for you out there. This is especially true if you’re growing rapidly, since your needs when you opened your first account are likely to have changed significantly. Just remember to check with your current provider before you do – they will be keen to keep you as a customer and may make an effort to improve your deal.

Do banks offer overdrafts on business bank accounts?
Just as with a personal bank account, business banks might offer an overdraft in case your spending overshoots. You’ll need to speak to them personally to find out how much they’re willing to lend, and the interest they’ll charge on it.

Related articles

What is Soldo?

Corporate cards come with both pros and cons. Read on to find out more.

How can I control company spending?

No matter how big your team gets, there are all sorts of ways to stay in control of company spending. Read on to find out how.

How do I manage business expenses?

Getting a handle on business expenses can seem like a big ask. But find the right tools with us, and you’ll get off to a flying start.

Supercharge your business bank account with Soldo

Soldo is a multi-user expense account, complete with payment control console, prepaid card and mobile app. You’ll be able to view payments in real time, streamline admin and paperwork, and develop actionable insights that will improve your cash flow.

The payment control console

With Soldo’s payment control console, you gain an immediate insight into who is spending what in a way you don’t with monthly account statements.

Every payment a team member makes appears on the dashboard in real time, and you can browse them by cardholder, transaction type and more. You can choose to receive notifications when employees make expensive purchases or run low on cash, and make free and instant fund transfers to keep them moving.

You can link your payment control console with accounting software, and export transaction data to Quickbooks and other accounting apps. It also seamlessly integrates with Xero, including its automatic bank feed and accounting APIs.

The prepaid card

Soldo cards enable members of your team to buy what they need. And you can allocate as many of them as you like without any worries about overspending.

That’s because unlike a business credit or debit card, Soldo cards aren’t linked to your company bank account. You (and any other admins you choose to appoint) are in control of your business account, and decide how much money you want to load onto each card. Plus, you can set daily, weekly or monthly limits on the amount cardholders can spend, or add rules about where and how frequently they can use the cards.

The mobile app

With the snap-and-go feature in the mobile app, your finance team won’t need to spend time at the end of the month matching payments to cardholders on a bank statement.

This will free up their time, and avoid disputes if paper receipts go walkabout. Plus, staff are more likely to take responsibility for their own spending: with real-time in-app updates, they’ll always be up to date on how much they’ve spent and how much is left on the card.

“With the service Soldo provides, it just makes everything so simple. Love it, and will definitely recommend to anyone who needs.” Lynn

“Life-changer! Wish I’d found it before!” Alfredo