Should I have a separate bank account for my business?
I get asked this a lot by new clients and the answer is split into 2 parts.
If you are a limited company then a separate bank account in the name of the LTD company is a legal requirement, as it is considered a distinct legal entity on its own.
The law states you MUST keep your personal and business finances separate.
If you set your business up as self-employed (also called a Sole Trader) you can use your personal bank account.
However, even if you don’t have to open a business account, there are plenty of
reasons why you should do so!
Why a separate business bank account makes sense.
Having a separate and dedicated business account rather than have personal expenses and business costs mixed up in the same account makes your bookkeeping so much easier.
Easy to tick off business expenses and customer payments, easy to do a bank reconciliation.
Having a business account will help to make you appear more professional and trustworthy.
Customers like to know they are paying for Pest Control Services by paying into your ‘trading as’ (t/a) business account rather than one in your own name.
For help with bank reconciliations and bookkeeping
or book a diary slot convenient to you