Starting up your own business can be a stressful time and you will need to make some important financial decisions along the way. Business banking is a solution that some turn to, offering account packages and services which can be useful, allowing you to concentrate on other essentials.
Initially you should ensure that you select the best bank for your needs. Perhaps you already have an account with a trusted bank and you would like to continue using them for your business requirements. Make sure you shop around and do some research before making any firm decisions about who will be in charge of your money.
Once you have settled on a bank, the process of opening an account is usually simple. You will need to provide personal information, and many will look into your history including any convictions you may have. Several banks offer discounts for the first few months, a particularly good policy for new business owners who can find themselves a little strapped for cash after covering any initial startup overheads.
It is important for business owners to decide which packages they need to utilise. Smaller businesses often only need simple services such as a separate business checking account, or a means of paying the wages of any employees. Think about how much cash will be moving in and out of your business account. Will you need an advisor who can help you make important decisions surrounding investment opportunities and cash flow management? What are your long-term business objectives? Will you need to transfer money overseas or will your operations mainly exist within the country in which you live?
Online banking can be very useful for those looking for a basic level of services. One advantage of this is that it’s very quick and gives your financial information visibility so that you can access it easily. What’s more it can give your working hours flexibility, whether you want to continue with a part-time job as your business finds it’s feet or you simply prefer to carry out the majority of your tasks in the evening. Transferring money between various accounts becomes a streamlined process and if you run a credit card with the same bank you can also transfer payments into this with ease.
Some might believe they are better placed to continue using a personal account while their business grows. However, this can be risky as new businesses must monitor and analyse their business-only transactions so that they can make sense of their successes and failures. This is also an advantage if HMRC make enquiries into your startup. Keeping records of all transactions, including all incomings and outgoings, will ensure that you are able to calculate tax payments as and when they are required. It is very important that you keep on top of this, just because you are now in charge of a business does not mean that you no longer need to be responsible about tax.
Overall, finding the right bank account for your business needs is vital. Compare payments and cash management services from HSBC or explore online to begin your research.
This is a guest post for TheEmployable