A business bank account is a bank account that’s used solely for business transactions. It can be opened in the business’s name, allowing payments to be made and received using your limited company’s name. Our latest article explains why you need a business account for your limited company.

What is a business bank account?

A business bank account is a bank account that is used solely for business transactions, such as receiving payments from clients or paying expenses. It should only be used for business transactions, and you should keep your personal finances separate from your business spending and income. A business account can offer additional helpful features and services for running a business.

To open a business bank account, you must confirm your identity, business, and any directors registered to your company with your chosen provider. When choosing a business account, it’s a good idea to compare accounts across providers to consider the tools and services they offer and the fees.

Do I need a business bank account for my limited company?

If you have a UK-limited company registered with Companies House, you must open a business bank account. This is to comply with the legal duties of running a limited company. This is because a limited company is a separate legal entity from the business owners and is financially independent of them. Therefore, you cannot use your personal account for the business as your company’s money needs to be kept separate from your personal finances.

For more information about how to set up a limited company, appoint directors and shareholders or guarantors, register for tax, and your reporting responsibilities as a director, please visit the government’s website.

Is a business bank account different to a personal bank account?

Business bank accounts operate similarly to personal bank accounts. You can set up payments, see your balance, receive payments into the account, and use a debit card. One common difference from a personal account is that you sometimes pay a monthly or annual fee to use a business account. There may also be additional charges for exceeding transaction limits or for certain transactions. These charges will vary depending on the provider and the available tools or services.

Before opening a business account, it’s useful to consider your business requirements. For example, do you need a basic account, or do you require additional services such as categorised spending, accounting and invoicing software integration, expense tracking and customer support, or streamlined currency exchanges and transfers if you work overseas? We highly recommend shopping around and seeing what different providers can offer you based on your business requirements.

Contact us today to discuss your accountancy requirements

At Bluebird Accountancy, we provide the tools you need to manage your bookkeeping and accountancy, along with the support of a dedicated accountant manager who will answer any questions you may have.

Please contact our expert team today by calling 0808 301 2389 to discuss your accountancy requirements and how our accountancy service could benefit you and your business. You can also request a callback at a time that suits you, and a member of the team will contact you.