Why do you need a bank account for a business?

We look at reasons why you will need a bank account for a business.

Do you need a bank account?

These are the list of reasons to have a bank account for a business.

1. Accept international transactions

A business bank account will enable you to accept international transactions.

2. Access business loans and credits

You will not be able to access business loans and credits provided by some banks and building societies.

3. Legal requirement for a limited company

If your company is a limited company, then it is a legal requirement to have a business bank account and to separate your money from personal finances.

4. Easier For TAX and VAT

Having a separate bank account from your personal account, will make it easier to process your TAX and VAT.

5. Separate personal money from business money

Separating your business finances from your personal finances will mean you will not be spending money from your business for your personal spending by error.

Do you need a bank account

6. Clearly see your cash flow

Having a business bank account will enable you to clearly see your cash flow.

7. Professional image

A business bank account gives your business a professional image.

8. Improve business credit score

Using a business bank account will increase and improve your business credit score. This will help when applying for loans.

9. Pay staff wages

Having a business bank account will make it easier to pay staff wages.

10. Integrate accounting software

You will be able to integrate accounting tools like Xero and QuickBooks.

Business bank accounts

Here are some business bank account you can open easily and quickly:

Cashplus Bank

Anna

Revolut

Tide

Card One Money

Counting Up

Monzo

Additional Information

Money Advice Service
For debt management and advice on how to pay for bills go here: Money Advice Service info page.

Find out more about financial regulations, here: Financial Conduct Authority (FCA).

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