Welcome welcome welcome, you’ve made it to an important moment in your entrepreneurial journey …. The moment when you realise you need to consider splitting your business’ finances from your personal stuff (we are bursting with pride and joy ☺️). It’s a big step, nice job. And if you landed here randomly and are thinking eh? Skip to the bottom of this blog where you’ll find a TLRD.
What is a business bank account?
To bring the random landers up to speed, a business bank account is really important to get a holistic view of how your business is doing. It’s a bank account that is opened up in the name of your business and is suitable for limited companies, partnerships, sole proprietors, freelancers and gig workers. The biggest win is that it separates your business transactions from your personal spend.
Why the heck do I need one?
- Builds your credibility as a business and can help you build your business credit score
- You need one to apply for business credit or loans
- It will help you organise your finances and get ready for tax season
- Link it with stub, and BAM, your business accounting is now officially a dream 😉
Things that you should consider and compare when choosing what bank to go with…
- Monthly Account Fees
- Transaction Limits and Fees
- Online Banking Services
- Accessibility, Support and Branch Network
- Interest Rates on Deposits
- Overdraft Facilities and Credit Options
We’ve done a comparison on some of the business bank accounts across South Africa:
When checking these out it’s important to look at all kinds of fees and not only the monthly ones 👀
We’ve given you all the facts but it really is about what suits you and your business ☝️ . There is one more tip from us, that we'd like to share with you 👂If you are a sole proprietor or freelancer you could look to just opening an additional personal bank account and save on all those above fees. This is not us telling you what to do, but hey, we just want the best for you and your business.
Take a look at some of the personal bank options out there:
That moment we were talking about at the start of this blog? We hope it’s a more informed moment. And for the TLDR’ers….
Check out the two tables that explore comparisons on pricing of business and personal bank account options. You can use these to see what could be best for you and your biz 👀
Happy banking hustlers, we can’t wait for you to connect it to stub once you’re up and running to make those income and expense transactions seamlessly automatic ⚡