Are you starting up your own business or taking on some freelance work? You might be wondering whether you need a business bank account or if you can use your personal bank account for work-related transactions. Here is a breakdown of why you need a Glade business bank account.
If you work for yourself, get a business bank account.
If you’re starting up a business, you are required to have a business bank account.
Most of the time though, even the smallest of sole traders will benefit from setting up a dedicated business bank account. So if you’re asking whether you need a business bank account, the quick answer is ‘just do it!’
Glade Business bank accounts can be:
- Quick to set up within 3 minutes.
- A great way to understand your business finances
- An essential tool to prepare for tax time.
There’s simply no reason not to get yourself set up with business banking.
You can set up a Glade business bank account in minutes!
Look for a business bank account provider (like Glade) who offers a bank account with quick online payment services and an ‘unregistered’ account plan. These accounts can be upgraded to a more fully-featured account if and when your business starts to grow, but should cost you nothing in the short term.
And remember, if you decide that working for yourself isn’t for you, you can simply close your business account without incurring any costs. However, we will be along the way to provide support to help you grow your business.
You’ll understand your business finances better.
To put it simply, there are two types of business transactions you will make.
Receiving and Sending Money (locally and internationally).
When you make money, get your customers to pay you into your business bank account rather than your personal account. If you have online accounting software like Quickbooks, Xero you can link your accounting software to your online banking to quickly match ‘money in’ transactions with invoices. That way, you’ll have a clear view of what invoices are paid, and which customers you still need to chase for payment.
When you spend money for your business, use your business bank account. They usually come with physical and virtual cards to make transactions easy.
It’s easy to get in a muddle when your personal and business transactions are all made in the same account. By setting up a Glade business bank account, you’ll understand your business finances much better.
Be ready for tax time
If you set up a Glade business bank account, you’ll know exactly what you’ve earned (‘receiving money’) and what expenses you’ve incurred (‘sending money). Remember ‘money in’ minus ‘money out’ equals the pre-tax profit you’ve made. A great rule of thumb is to keep some of the profit (say 20 or 30%) in your business bank account for tax time. You can pay yourself the remaining balance, we equally have an automatic personal account for you just for that!
Ready to get started?
You can find out more about the features of Business Bank Accounts by visiting Glade today.