If you’re a sole trader you aren’t required to have a business bank account. But it’s a good idea to have one anyway, as it means you can separate your business and personal expenses which in turn makes bookkeeping easier.
So what should you look for if you’re planning on opening a business bank account? All business bank accounts offer a cheque book and paying in book, but there are other features you’ll want to consider too: Continue reading “How to choose a business bank account”
So you’ve decided to go ahead and get a business bank account. Do you really need a business savings account too? It may actually be a very wise move.
Every year, many self-employed people receive a tax bill and and don’t have the money to pay it. It’s a really unpleasant situation to find yourself in, but easily prevented by putting a percentage of your income in a savings account throughout the year. It’s best to tuck this money away as soon as you’re paid and consider it the property of the tax people so you aren’t tempted to spend it!
Other reasons for having a business savings account are to help you manage your money better. For example, most self-employed people aren’t paid regularly throughout the year, so it makes sense to put the surplus from a good month in a savings account ready for those months where you don’t get paid at all. And although interest rates aren’t exactly great for savers at the moment, you’re likely to get more interest on a savings account than a business current account. Finally, if you’re saving up for a big investment such as a new piece of equipment, it makes sense to put that money in a savings account until you need it. Continue reading “Do I need a business savings account?”