Discover more about the start up business accounts
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Startups have become an integral part of the business ecosystem. Among tons of things to do, having the start up business accounts is one of the most important parts.
You can use the start up business accounts for all the essentials in running a business, such as paying bills, salaries and checking statements.
You can easily separate your personal from business finances. This makes your life easier when it comes to expenses and accounting.
In this article, we’ll discover everything about start up business accounts, and some of the best business accounts for startups, so you can move to the next step on your business success.
What is a business account?
A business bank account or a business account is a current account with some additional features.
Business account is specifically designed for a start up business. It should be kept separate from your personal bank account. With a business account, it’s easy to make deposits and withdrawals, buy goods and any services or more.
Banks offer several kinds of business accounts based on different business lines. Some financial institutions even offer resources with these accounts to help startups develop their business.
Discover more about the start up business accounts
For example, some banks offer business accounts for the needs of import-export businesses and e-commerce ventures.
However, business accounts are usually charged with high fees and extra transaction costs.
3 main steps to open a start up business account
When picking the best business accounts for startups, there are 3 basic steps to start off on the right foot.
Choose to register your business in the form of a proprietorship, partnership or a company under the Companies Act.
Apply for business licenses (based on your business industry) and register under other Acts as if, like Directorate General of Foreign Trade guidelines, Customs or Income Tax…etc
Apply for a startup business account online on their website of a financial institution.
If the financial institution doesn’t support that, you can apply at a physical branch nearby.
Collect all required documents to open the business account and hand them over to the financial institution.
Once your documentation is accepted by the officials at the financial institution, your account will be opened.
After your business account is opened, you can benefit from the various facilities offered by the financial institutions.
It can be cheaper access to credit, professional services at reasonable rates, cheaper access to foreign exchange, minimum balance requirements...
How do I choose the best business accounts for startups?
You already know how to open a business account. The question you can wonder now is: How do I choose the best business accounts for startups? To answer it, that requires some considerations.
Choose the suitable service provider
There are a lot of financial institutions with specialized banking offerings based on each needs of your business.
For example, if your business bank accounts are built for startups, some banks supply you with consultancy, advisory services and logistics solutions.
In addition, they offer digital payment support, cash management systems, bulk payments, and other features. It’s required for you to meet with the offerings of the bank to your business needs.
Be easy to use and add-on services include
Other things that you need to care about are the ease of use, add-on services like payroll to make your life easier, and a banking partner with all the services you need under one roof. By doing those, you don’t need to cover all multiple platforms.
Alternatively, you can use the same provider for both your personal and business accounts. This can be a good idea because you want quick transfers between accounts, or to be easy to manage your accounts in place.
Make a comparison about fees, features and services
You can take a look at all deals offered to not miss out on any better deals. By shopping around, you have chances to compare the fees, different features, charges, services and benefits.
Fee-free deals and other discounts seem irresistible, but you should consider the whole package and what will be optimal value for your business, depending on the benefits and transaction charges.
It’s necessary for you to check feedback on review sites, customer service and usability to have detailed pictures of the best business accounts for startups.
Who should use a start up business bank account?
There are many startups in business. Whether you need a business bank account relies on the type of business you have.
Sole trader (sole proprietor)
Sole traders can be a freelancer, self-employed or a contractor. It is your option whether you open and use a business account. Keep in mind that you should keep your business account separate from your personal account.
By this way, you will determine business income and expenses obviously, and monitor your cash flow easily. This will help everything go smoothly when it comes to finishing your tax return.
Separating your personal and business is a must as your business grows. Your business will build up its credit score. If you manage it well, it will be at a higher position and better reputation for a business loan or business credit card afterwards.
You can be more confident in hiring an accountant or tax adviser to manage your finances because your personal transactions will be kept separate. If your customers pay you, it looks more professional if those payments are made to a company name instead of your own name.
Many banks won’t allow you to use personal accounts for business purposes. If your personal account has many business transactions involved, your services can be stopped and your account will be terminated.
If your start up is a limited liability partnership, limited company, or even an employee, you need to have a business account. Your company income should reach that account, then you can pay your expenses and salaries from that account.
Your company’s funds must be kept separate from your personal money, because it’s a separate legal entity.
More about DNBC Financial Group
DNBC Financial Group is an outstanding institution in the Fintech industry, providing money payment solutions all around the world, especially for business accounts.
DNBC Financial Group has become the financial service provider since 2017 with payment solutions at reasonable fee and favorable exchange rate.
DNBC Financial Group now has a considerable number of customers globally and has become an optimal payment provider in the world.
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