If you are a small business, it is vital that you keep on top of your finances to ensure that your business is running smoothly. Keeping the bills of your small business down is actually easier than you think and you can use many of the same techniques that you would use when trying to reduce your household bills.
Once you have registered your small business, the first thing that you will need to do is find a business bank account, which can be expensive. Here, we are taking you through our top tips that you should follow as a new small business.
Try and Use a Personal Account
Are you a sole trader and not a limited company? Then great news! You might be able to use a personal banking account instead of a business bank account. Personal accounts are normally much cheaper to use when compared to business accounts and so, financially, it makes sense to go with an option such as one of these BB&T accountsas this will keep your costs down.
Using a Business Account – Lowest Charges
If you cannot go with a personal account, then you may need to instead opt for a business bank account. This is something that your bank can advise you on and they normally will do this if you have to deal with quite large sums of money, have a lot of transactions going through or you need to bank cash a lot.
When you are looking for a bank account, you will want to try and choose one that offers as many perks as possible. You may be looking for a bank account that offers unlimited free day to day transactions and a bank that offers in-credit interest.
These types of banks are similar to consumer bank accounts, but they tend to have limited features. You do also have the option to get extra features with your business banking account such as accounting software and business assistance, but this will cost you.
Try and Minimise Your Charges
No matter what kind of bank account you have for your new small business, a priority should always be to try and minimise the charges that you pay. When running your business, you need to try and operate in a way that minimises these charges. For example, try to always stick to online banking and cut down on how much cash you are paying into the account. You should also be trying to use automated transactions if you can and don’t use unauthorised overdrafts.
Put Cash into Savings
Once you have your new business up and running, you will hopefully be in the position where you have built up cash in your account. So, it is important that you have a business savings account linked to this. This allows you to put all your money in one place and maximise your interest.