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Do I need a separate bank account?

Wednesday, May 9, 2018
Do I need a separate bank account?

Do I need a separate bank account?

If you are a limited company then you have to have a separate bank account set up in your limited company name.  When you set up the account you will need to take a copy of your incorporation certificate with you to the appointment.  Banks will only allow you to have a business account for a limited company.

Many banks offer free banking periods or other benefits to new customers – however this isn’t the only thing you should consider when choosing which bank to use.

If you are currently a customer of your chosen bank (ie you have your personal accounts with them), then quite often it is easier to set up a new business account, and sometimes you can even do this online rather than attend a branch.

Logistics is another thing to bear in mind – if you don’t need to pay in cash or cheques then one of the newer online offerings may be more beneficial to you.  However, if you do need to pay in cash or cheques then you need to ensure there is a branch local to you that you can get to when you need to.  Most banks are open the usual working hours, but some of the newer high street banks are now open later in the evening or at weekends – so make sure the bank you choose is accessible when you need it to be!

Lastly – if you are looking to use a bookkeeping software, like Xero, look at the banks which have direct feeds with your chosen software.  One of the major benefits of online software is having the bank feed with your chosen bank, so ensure your bank connects (and the feed is stable & reliable) before you open the account.

This is a good link to compare bank account services/packages: https://www.moneysupermarket.com/current-accounts/business-bank-accounts/?p=0&cicp1=&source=MIC-005D8106&mckv=aRA6MMbW%7Cdc_pcrid_516069282_mtype_bp_kword_business%20bank%20account_2764ri918980&uuid=bcabcb15-441a-48f0-aabb-ae09057d64cd&Device=c&engine=bing&utm_term=business+bank+account&utm_campaign=MON_Business+Banking_Phrase_PC_%5BM-MON-BUSBNK%5D&utm_medium=cpc&msclkid=59f3a42e953a1f6aeb55fe88e7b80cbf&utm_content=Generic&utm_source=bing

If you would like any advice on bank accounts that work well with Xero please contact us.