5 reasons why the self-employed shouldn’t use a personal account for their business
Time is precious, especially for people running a small business.
To save time, many self-employed sole traders and landlords use their personal bank account for their business transactions.
By doing this, they are creating problems down the line which costs them even more time. The main reason for using a personal account is that it is often faster and much less hassle than opening a business account with a High Street bank — but there is a better way.
In today’s world, waiting weeks for a business bank account can feel like a lifetime. The business world doesn’t slow down, so why does your bank? With Countingup, you can open a smart business current account in less than 10 minutes, on your smartphone, and it’s FREE!
Below are 5 reasons why it makes sense for you to open a separate business account:
- Saves time! Working out what is personal or business by going through a bank statement line by line is a slow and painful process.
- Tax returns are a lot easier. At the end of the year when you and your accountant are trying to file your tax return, having a separate business account makes it far easier. There’s more time to make sure you’re not paying too much tax.
- Easier to see how your business is doing. By keeping your business finances in a separate current account you can see from the incomings and outgoings how healthy your business is.
- Less stressful! By separating business and personal finances you’re not worrying about what payments are due out and when.
- Better business practice. Having a legitimate business current account not only looks more professional, but it could help save you down the line. Often it is in breach of a banks terms to use a personal current account for business reasons, and if there is a disputed payment later on this is the last thing you want coming up.
Open a FREE business current account with Countingup in just 10 minutes by downloading Countingup for iPhone or Android.