Wallet Doctor's advice on opening a business bank account

It is by no means a legal requirement to open a business bank account but there are numerous advantages and benefits to doing so. One of the obvious reasons is that it enables you to separate your business and personal expenditure which in turn enables you to make things much easier when balancing your books.

If you use an accountant then it will reduce the amount you have to shell out as their job will be made much simpler because your records will be clearer for them to see.

In most cases the banks will now offer to pay credit interest on business accounts.

It is also likely that you will be offered a period of free banking, however, be aware of how long this period lasts and what interest rates are incurred after that period.

Having a business account enables you to sign someone else into the account if the business grows for example, whereas it would be much more complex if you were still using a personal account.

You will also be assigned a business manager once you have opened your business account which can prove invaluable when starting out in the business world. If you build a good personal rapport with your business manager then you may find it easier if at any point you are in a position where you need to borrow money. Their advice on different ways to borrow could also prove useful.