Best Business Bank Accounts for Sole Traders and Limited Companies

What is the best business bank account? Monzo, Starling, Tide or highstreet banks?

Hi guys welcome back to my youtube channel today i’m talking all about business bank accounts which ones you should be looking at setting up for your new business but before we start i’d really really really appreciate it it would help me massively if you could just give this video a thumbs up and hit that subscribe button it would really help me it helps youtube

And the algorithms and it gets this content out there so other people can benefit from it i’d really really appreciate it if you could just hit that like button cheers okay so business bank accounts if you’re running a business whether that’s a limited company a sole trainer a partnership you should have a business bank account getting this set up from day one is

Absolutely crucial because it’s going to help you keep better quality records it’s going to make your bookkeeping and accounting easier and it’s going to ensure that all you’ve got all your records all in one place as an accountant i see firsthand just how messy it can be where clients put money through their personal bank account saying they’ve got a business bank

Account set up halfway through the year and then as a result of this they might go overdrawing their director’s loan account which means they have more tax to pay when it gets end of the year so my advice here would be get a business bank account set up from day one and have all your transactions going through it that way nothing gets missed and you’re 100 sure

That you’re on the right path from a tax and accounting point of view so with kovid a lot of the high street banks are still being quite slow and selective and who they’re opening accounts for so we’re gonna run through my top four online business bank accounts um and run through some of the features so first up is styling i use them for a lot of my companies so

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Far no bad experiences with them at all they really are spot on they’re free to set the accounts up there’s no ongoing cost for transfers and things like that it integrates with bookkeeping software so xero it integrates with that very very nicely and they’ve also got their own accounting software that’s kind of built into it as well but i don’t use that i haven’t

Used that so i can’t recommend that but as a bank account for day-to-day expenditure they really are good and they’re covered by the financial services compensation scheme so if you are looking to set up an account with stalin we’ve had no problems with them at all and would recommend them one thing to bear in mind is that they don’t offer accounts where you’ve

Got a holding company structure in place where you’ve got a group structure so you’ve got a holding coming at the top training subsidiaries they don’t offer accounts for that kind of structure so you’ll need to look at going somewhere else so up next is monzo i’ve not personally had an account with them but i’ve got loads of friends and business partners who

Have and it’s really positive experiences all round for businesses they do offer a free account that’s got limited usage i believe it covers a free card and free transactions but they also have a premium model where it’s for five pounds a month for more features again monzo does link with xero and quickbooks and over online accounting software which is great you

Definitely want those and that feature available so that your bookkeeping is as easy and seamless as possible so have a look at monzo i’ve not used them but i’ve heard good things up next is tide tired really are quite good previously i had some concerns about tide especially leaving large amounts of money in there because they weren’t directly financial services

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Compensation scheme registered which basically means that if everything goes to burst and we go to through 2008 the financial crisis all over again the money isn’t guaranteed by the government whereas recently i think i read somewhere that they are now covered directly by the financial services compensation scheme which means large amounts of money are safe in a

Tied account tied is free but they do charge a small amount i think it’s 20p per transfer however we are an affiliate of tide so if you use code jsm when registering you would actually get completely free banking for the full year tied are great so you get your free account um 20p per transaction so it’s kind of superior inferior to styling in that respect and

That you do have to pay so if you’ve got large amounts of transfers it’s going to be quite expensive but the good thing about tide is that they do work with holding company structures so if you wanted one for any of those subsidiaries you’ve got tide will do it where you’ve got holding companies this is a massive advantage to set an account up with tide and again

They link to quickbooks zero all of your accounting software’s all of those bank feeds so it’s really really good in that respect last up we’ve got counting up so this is more of a hybrid basically bank account and also it’s an accounting software all in one they do have free plans they do have paid plans um but that’s the whole point of accounting up is that

You allocate your transactions in there you can get a profit and loss balance sheet because we tend to work with xero we don’t actually have any hands-on experience of using counting up but i thought we’d mention it just for completeness so there’s some of the online options that are available obviously if you’ve got a relationship with a high street bank as

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Well go and speak to them because barclays hsbc um nat west metro i’ve not heard good things about i actually tried to set up an account with metro they said they’d be in contact within two to three weeks to this date six months later still not had anything so i’m going to give metro a thumbs down on that one but hsbc barclays they’re all pretty good as well

Just look at their account fees and compare it so stalin is free so if you’re not doing too much stan is obviously going to be a winner but if you are looking to get mortgages you want a relationship driven banking service as your company grows you’re going to want to look to go to one of the high street banks so you can get commercial finance and those kind of

Things so definitely get a business bank account set up even if it is just one of the free ones using um styling tired monzo because it helps you keep all your records in one place you can just give them to your accountant and when it comes into the tax you don’t want to be able to give them your personal bank statements um and they’ve got you dubiously they can

See how much you’re spending on justine see where you should go and shop in you don’t want to give that information to them you want to keep that to yourself and have all of your business transactions going through your bank account i hope you found this video useful please do make sure you hit that thumbs up button and that subscribe icon so you get notified

As soon as you post more videos thank you very much for watching today

Transcribed from video
Best Business Bank Accounts for Sole Traders and Limited Companies By Joshua Tharby