It’s important to have strong financial habits to support the success of any small business. For contractors, there’s no exception. Having a good business current account can help you manage your finances and make good decisions with your money. 

This guide will discuss the best business account for contractors, including:

  • What contractors need from a business account
  • How Countingup’s features can help with your contracting business
  • How to set up your business account

What contractors need from a business account

A business current account is just like a regular bank account, except it’s solely for your business. As a business owner, this can be crucial to separating your business finances from your personal ones. 

As a contractor, you need to keep close attention to your business spending. Chances many business purchases will go towards supplies for your contracting jobs. Without clear records of these expenses, it’s more challenging to put together invoices for your clients

On top of this, it’s important to track your business earnings. This knowledge will show you how much profit you earn from your jobs and where you can cut down on unnecessary spending. Plus, as a contractor, you may suffer from poor cash flow if you fail to determine the necessary deposit to cover materials for each job. If you don’t consider your cash flow, you may struggle to meet the necessary expenses. 

So contractors need business accounts that are more than just business accounts, like Countingup. Rated ‘Excellent’ on TrustPilot, Countingup is the two in one business account and accounting software app. Thousands of single-person businesses trust Countingup to streamline, save time, and better understand their finances. 

Make it easier to run your your contracting business

The best business account for contractors should offer tools that help you improve your business finances. Unlike most business accounts, the Countingup app puts everything in one place so you can analyse those finances with useful bookkeeping features. The app allows you to spend with purpose and be aware of what you earn. 

Everything in one place 

Bookkeeping and accounting can be overwhelming when you have contracting jobs to focus on. So, contractors need a business account that puts everything in one place. Your Countingup app combines your finances with accounting tools to analyse and record those finances. The app streamlines the process and automates essential steps, so you don’t have to worry about them.  

Invoicing on the go 

The Countingup app lets you create, send, and even duplicate unlimited invoices on the go. Plus, you can add your business logo to make these invoices unique. This feature with your business account helps ensure you make the money you work for. For example, you may ask clients to put down a deposit before the job. By tracking this, you can know how much to charge when invoicing after the job. 

Countingup will also notify you when you receive the invoices and automatically match them to payments. 

Cash flow insights

With everything in one place, the app generates ongoing cash flow insights so you can be more aware of the cash coming in and out of your business over a given time. This tool can help you plan for better business budgeting. If you suffer from poor cash flow, use this tool to see where you spend too much and what to cut down on. And when you have excess cash, you can set it aside for growth or savings. 

These insights will be handy as a contractor if you have to pay for supplies and goods before you charge clients for them. If you don’t have the available cash to order supplies for jobs, waiting for clients to pay can delay your work. This challenge may lead to lower client satisfaction or working with fewer clients at once.  

Tracking expenses

Countingup also helps you track your business expenses with automatic expense categorisation based on HMRC approved categories. This feature will help you find client expenses and those to deduct from your taxes. Even more, the receipt capture tool instantly reminds you to take a picture of your receipt to store proof of transactions. 

Simplify your taxes

As a business owner, you’ll have to manage your own taxes, which will likely include income tax, dividend tax, and national insurance. Luckily, Countingup provides year-round tax estimates within the app to help you avoid surprises. The estimates also allow you to plan for and set aside money for tax expenses. 

The app is also Making Tax Digital compatible, with digital tax filing services that automatically calculates the VAT associated with your transactions. Then, you can instantly share your live bookkeeping data with your accountant without errors or duplication. These tax features will take the stress out of your tax process. 

How to set up your business account

Opening a Countingup account is quick and easy. In fact, it only takes five minutes. Start by downloading the Countingup app and following the instructions.

To open your account, you’ll need some information handy, including: 

  • Full legal name
  • Residential address
  • Date of birth
  • UK mobile number 
  • UK email address
  • Business name
  • Business type 
  • VAT registration

Once you fill out the form, you may need to confirm your identity using a valid ID. Once everything is all set, Countingup will provide you with an account number, sort code, and Mastercard. 

Learn more about Countingup’s criteria for joining here

Save time on your financial admin 

Financial management can be stressful and time-consuming when you’re self-employed. That’s why thousands of business owners use the Countingup app to make their financial admin easier. The best business account for contractors will help you run your business smoothly. 

Countingup is the business current account with built-in accounting software that allows you to manage all your financial data in one place. With features like automatic expense categorisation, invoicing on the go, receipt capture tools, tax estimates, and cash flow insights, you can confidently keep on top of your business finances wherever you are. 

You can also share your bookkeeping with your accountant instantly without worrying about duplication errors, data lags or inaccuracies. Seamless, simple, and straightforward! 

Start your three-month free trial today. 

Find out more here.