There can be countless benefits of using a business account when it comes to running your own company. Any commercial business or sole trader can open a business account to manage any funds that are acquired through their business. These accounts work much the same as a personal bank account except with additional services provided with business owners in mind. If you are a small business just starting out, this article can help you understand exactly what advantages your business account could provide for you.
Keep Track Of Transactions
Unlike personal bank accounts, business accounts can provide a more comprehensive service that can help you keep on top of your organization’s transactions. At a glance, you can clearly see everything from payroll, to what your business owes and is owed. Alongside this, you can track expenses, monitor spending, and avoiding any overspending, all of which is paramount to the success of any small business.
Simplify Your Tax Returns
Each year, every business service is subjected to file an obligatory tax return, and to do this you’ll need to keep records of your business’s sales and expenses. One of the main benefits of having a business account is that when it comes to that time, all income and expenses your business has incurred can all be found easily within one account, without having to trail through personal payments. If at any time your business was to be inspected by HRMC, they can easily find all of your business transactions confined in a single business account, meaning you can keep your personal finances private.
Debit and Credit Cards
Just like your personal bank account, your business account will come equipped with a prepaid debit card, making it easier to keep track of transactions, charging any business expenses that occur to the correct account. If you choose to opt for a business credit card, you can take advantage of a range of additional benefits, including offers on travel insurance, shopping discounts, and more.
Maintain A Professional Image
When making transactions to and from suppliers and clients, having a business account is an immediate tick of recognition that shows you are a serious, respectable business owner. This simplifies transactions whilst simultaneously upholding a professional image.
Improve Your Business Credit Score
Just like your personal accounts do, having a separate business account will help you to begin to build up a credit rating for your company over time. This can become particularly useful if you ever wish to take out a business loan for expansion, or you’d like to apply for a company credit card. By properly maintaining your business bank account, you’ll begin to benefit from a steadily growing credit history, resulting in an excellent credit score.