<\/span><\/h2>\nPersonal and business bank accounts don\u2019t need to be with the same bank<\/p>\n
Banks run their personal and business accounts as separate operations, which means that even if you like the service provided by your personal bank account, it doesn\u2019t mean they will provide the best service when it comes to opening a bank account for your contracting business.<\/p>\n
So it\u2019s a good idea for contractors to shop around at different banks to find the most suitable business bank account.<\/p>\n
<\/span>Business accounts suitable for contractors<\/span><\/h2>\nContractors have specific requirements that not all types of businesses have, so it\u2019s not always the best idea to choose a bank because they are well known \u2013 while a bank might be known for their business accounts, it doesn\u2019t mean those business accounts are well-suited for contractors.<\/p>\n
<\/span>Free business banking<\/span><\/h2>\nMany banks try to entice contractors and other types of business to sign up for their business bank accounts with an initial period of free banking, where they typically do not need to pay any fees for 1-2 years. This could offer a great deal, but you need to make sure the cost, when you do start paying, is still a good deal.<\/p>\n
<\/span>Online banking for contractors<\/span><\/h2>\nContractors often work for clients in different parts of their town, city, or even country, meaning that there won\u2019t always be a local branch of their bank. This means you should pick a bank that has an option for online banking so you can manage your account wherever you are, with just a mobile or computer.<\/p>\n
<\/span>Interest on cash surplus<\/span><\/h2>\nFor contractors who run their business with a cash surplus, the interest they could potentially earn on their deposits could be a deciding factor in their choice of business bank account.<\/p>\n
<\/span>Company credit and debit cards<\/span><\/h2>\nBusiness bank accounts that come with company debit or credit cards, or even chequebooks if required, would allow contractors to charge expense items straight to their business bank account, rather than having to pay with their personal money, and then later claiming back expenses from their business.<\/p>\n
<\/span>Opening a contractor business account at short notice<\/span><\/h2>\nContractors might need to start their first contracting job on short notice, which means they\u2019ll need to choose a business bank account that can be opened on short notice \u2013 they might, for example, need to show recruitment agencies that they have a business bank account.<\/p>\n
It could take weeks from applying for an account to being able to use it because of the anti-money laundering checks banks are legally required to make.<\/p>\n
<\/span>Linking your business bank account to your accountancy service<\/span><\/h2>\nMany accountants will link up to a contractor client\u2019s bank account in order to provide a more streamlined service. You\u2019ll need to check with your accountant to make sure you choose a bank which allows them to easily transfer the financial data they need \u2013 your contractor accountant will also be able to advise you on getting a business bank account with good interest rates and features.
\nFor more detailed information view our section on Specialist Accounting Software<\/a><\/p>\n