Does your business have a dedicated bank account? If not, you might want to think of opening one.
Business bank accounts can deliver a lot of awesome benefits to your company. Here, we’ll look at some of the key reasons why every successful business venture needs a business bank account.
Easier tax reporting
Some business bank accounts not only make reporting taxes easier, they can also help you save for tax time. Banks like, NorthOne Business Banking offers customers free sub-accounts that let you put away money for big expenses like tax, rent, and payroll automatically
One of the best benefits of having a business bank account is that it’s easier to file tax reports. Each year, you need to file a tax report to the HMRC, showing how much you earned throughout the year.
The trouble is, if you’re using a personal account, you’re going to have a mixture of both personal and business transactions. This can make it really difficult to prepare the tax report as you’ll have to spend a lot of time working out which transactions are which. With a business account, you’ll see exactly how much you earn.
Enabling better tracking and assessment
It’s important to track and assess your spending in business and this is made so much easier if you have a dedicated account. You can see how much you’re paying suppliers and where your money is going. This can in turn help you to identify areas you can cut back.
It makes you look more professional
There’s no denying having a business bank account also helps you to appear more professional. It will look much better to a prospective client if you have a business bank, they can pay money into. It gives the impression you’re experienced and have an established business. When you use a personal account on the other hand, it can make you look inexperienced and not very successful.
They offer great additional benefits
Did you know that business bank accounts also offer additional benefits? Some come with free banking for a set period of time when you sign up. Others offer lower transactional fees and dedicated advisors. There are also some that offer prepaid cards for business accounts which allow for easier employee spending.
These are just some of the great benefits you could experience through having a dedicated business bank account. So, if your business doesn’t have one yet, now is definitely the time to look into getting one. Take your time to compare the different types of accounts out there too, to ensure you’re getting the right type of business account for your company.
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