By pearladmin
June 24, 2022
Managing your business's funds and keeping track of its expenses requires that you establish a business bank account. This blog will discuss what a business bank account is and the benefits.
A business bank account is an account that is used only for your company's financial transactions. The opening of the account may be tailored to your company's specific requirements, and it may come with several helpful services that are designed to make the operation of a company easier, such as the generation of invoices and the administration of tax returns.
A business bank account may be required by law, depending on the type of company you own.
The two most common business structures are limited companies and sole traders; let's take a closer look at these two.
You must have a separate bank account for your business if you are the owner of a limited company and have registered your business with Companies House. It is against the law to use your bank account to pay for business expenses; for this reason, it is best to keep your finances separate.
There is no legal requirement for a sole trader to open a business bank account. You may do all your transactions from your personal account; however, we recommend opening a bank business account to better track your professional accounts. This benefit will make your self-assessment tax process simpler
Pearl Accountants are a team of specialist accountants that have experience helping sole traders and limited company formations, we can help you with a wide range of services including finding the right business bank for you
It is much easier to file your taxes if you keep your company revenue and spending separate from your finances. You won't have to go through your bank statements to figure out which purchases were made for business; you'll have a separate account. It's a great way to remain on top of your finances.
If you ever plan on applying for business loans or a credit card, you need to have an excellent credit profile. You may improve your company's credit profile by opening a business bank account and paying business-related expenses on time.
Separating company spending from personal bank accounts might take some time for business owners. Using a separate business account specifically for these transactions can allow you to save time and put it to better use, such as finding new customers and expanding your business.
The length of time it takes to open a business account depends on the bank and the type of account. There are exceptions to this rule, but it may take up to four weeks to complete the necessary checks.
Good to know: Opening an account as a sole trader is fast and easy because there are fewer documentation requirements.
If you are looking for a bank that offers an account that would best suit your company's needs, You can read our blog to help you decide which bank is best for you.
You should create a separate bank account for your business to keep a healthy separation between your personal life and the life you lead outside of work. Those interested in obtaining business loans will find that opening a bank account for their company is an effective strategy to improve their credit rating; choosing a business partner who is an expert in the same sector as your company might bring even more advantages.
Pearl Accountants provides varied financial and business advice to our clients. Our team have a wealth of experience and is dedicated to providing our clients with the most professional and reliable advice possible, get in touch today!
We're glad our customers are happy with our products and services. Here's what some of them said about us...
Pearl Accountants are unique as you can get. They have a great one to one service and they always answer your queries in a fast and professional manner.
I find Pearl when I opened up my limited company. I was clueless, but Pearl Accountants kindly assisted me in the best way so I felt at ease and understood how the operation works.
Everything was explained clearly in detail and I could ask as many questions as I wanted. They were never rude or impatient, just happy to be there to help.
The client had previously missed a few deadlines with HMRC and Companies House and needed a hands on approach
Wanted to ensure they have a proactive team so that no deadlines were missed and full end to end bookkeeping carried out
Client was introduced to a dedicated accountant who filed all outstanding accounts and appealed for any penalties by HMRC
After being in business for years, I must admit that Pearl Accountants are far the best accountants I have worked with. They are helpful, friendly and trust worthy and most of all provide excellent tax advice.
They provide high-level client care. I would certainly recommend Pearl Accountants to all.
Invoice factoring complications led client to inaccurate bookkeeping and unclear of clear reporting requirements
Processing the invoicing system accurately with clear and transparent management reporting was key
Processing the invoicing system accurately with clear and transparent management reporting was key
Pearl Accountants have been my accountants for many years and have been a great asset to my businesses. They have a strong team and knowledge is second to none. Very happy with the service and professionalism from them. Will continue to recommend them to my network.
Paying huge taxes without any tax efficiency and lack of understanding on various VAT aspects.
Minimise tax bills and ensure the business was compliant with HMRC and Companies House
As a startup graphic design company, we ensured the client used tax allowances and efficient payroll structures to withdraw money
Holborn based laser hair removal company joined us with a view to expanding their business on a large scale. They undertook accounting and advisory services which helped them grow above their rivals.
Holborn based laser hair removal company joined us with a view to expanding their business on a large scale. They undertook accounting and advisory services which helped them grow above their rivals.
Achieve a national presence and grow organically through current business model
We came on board and advised client on tailor made business strategies to achieve their online and brick and mortar presence.
We have been using Pearl Accountants for over 10 years and developed a very good business relationship. Very clear instructions with easy to follow accountancy system in place. Great expertise in tax efficiency, as well as business, grow and development services. One of the best-chartered accountants in town.
We have already recommended your services and will share our good experience with others in future.
It is always someone available on the phone but if not available at the time your accountant will always call you back.
Complete peace of mind with prompt and clear communication so no deadline missed.
Very satisfied.
Client was growing very fast with inability to keep track of growth with no cloud accounting setup and no integrations
Time saving on bookkeeping and clear vision of profitability management reports. Setup with cloud integrations.
Recommended a online cloud solution with time saving applications and clear breakdown of monthly profitability.
We recently migrated to Pearl Accountants from large national accounting firm. Transfer was easy and faultless. Friendly staff at Pearl lead us through the process with ease. Initially we were drawn to their service because of their attractive pricing structure. However it quickly became apparent to us that we were getting a lot more for our money than we initially thought as they are happy to stretch the engagement to all sorts of additional advice. Thumbs up to Pearl Accountants.
No clear strategy for business growth or tax planning reduction techniques
To achieve business advisory, tax planning and accurate reporting requirements
Recommended a online cloud solution with time saving applications and clear breakdown of monthly profitability.
Our client, a well established practising solicitor in the UK required a headache free service to ensure their accounting requirements were met and cloud accounting solution setup
Too much time was being consumed in bookkeeping and previous accountants missed various deadlines
More time was needed to focus on the business and ensure a firm came on board to take full ownership.
Advised client to forward us everything in ‘shoe box’ style and provided full breakdown regularly to keep informed.
They make me feel that I am a valued customer and to me what makes Pearl accountants unique is their helpful team of dedicated staff members. Their response is always prompt and it makes the daunting task of accounting really easy for me. Pearl Accountants is really a five-star accountant company.
As a franchisee tuition business, the client did not have the right advise to reduce taxes or a proactive accountant to advise where needed
Reduction in taxes through governmental tax subsidiaries and requiring more time to focus on the business.
A dedicated accountant was assigned to ensure deadlines were not missed and review of tax strategies.
Our client was in need of a specialist contractor accountant to remain compliant and ensure they did not fall in IR35.
Client required advisory on payroll and VAT solutions and filing of accounts at year end.
No clear direction on IR35 nor guidance on allowable expenses that could be claimed.
Ensure the contractor company was compliant with HMRC and Companies House and advisory on saving taxes.
Provided a full explanation and review on IR35 and guidance provided on which expenses could be claimed to reduce taxes
Our client having a property portfolio in Switzerland required a specialist accountant that understood the UK tax legislation whilst having a thorough understanding of overseas tax implications.
Overseas and UK income not declared, needed tax returns filed for previous years and appeal to HMRC for outstanding penalty
Paying taxes in the UK and overseas, wanted help understanding the tax system so avoid paying taxes twice.
Appealed successfully for prior years penalties and filed all outstanding returns. Thorough review of all tax allowances available.
Our client joined us after losing track of their finances and needed someone they could turn to for help. We came on board and reviewed their internal bookkeeping arrangements and recommended efficiency to lower their input on areas which could be outsourced to us.
No real track of profitability or clear vision of expenditure along with weak internal processes.
To achieve a clear breakdown of expenditure and ensure the current setup for bookkeeping was run more efficiently.
Recommendation on reporting packs, internal processes and online applications to integrate for payment reconciliation.