Managing your business’s finances, at their most basic level, involves finding the best banking solution. This should help you to take care of the money your business makes and help you to support your company.
So how do you choose the right account for your business?
Bank accounts are often scaled depending on the size of a business. If you’re just starting your business, or you operate as a sole trader, you could use your personal bank account.
For other businesses of increasing size, a specialised business bank account is a better option. It separates business and personal finance in order to help manage a larger company’s finances more effectively.
When choosing this sort of account, you should look at the amount of money you expect to have coming in and going out. Some bank accounts cap the amounts you can deposit and transfer. This means you need to understand how your business operates to find a bank account that will be the most effective and best handle the needs of your business.
Different banking providers will often provide different services, such as free change services for retail businesses.
Understanding your business’s needs can help you select a bank account based on the sort of services that bank provides. If you run a small business, for example, accounts that offer fewer fees on transfers or a lower cost for maintaining the account could be beneficial.
Larger businesses might need to look for accounts which allow larger sums of money to be transferred. For instance, to accommodate the need to pay for more staff, suppliers and equipment.
Each banking provider will offer their own unique perks to businesses. Finding the one which is best suited to your business and how it is run can help to narrow down the search for the right banking solution.
Your business might align itself with partners and suppliers who share a similar moral and ethical standpoint. This is also possible with your banking. Ethical banking is the term applied to a bank which aligns its business practices with a specific ethical standpoint.
Our blog, What is ethical banking, explains more about how a bank can align its services with an ideological viewpoint.
In business this can tie into your overall philosophy, like by working with companies and partners who support environmental causes. While the services an ethical bank provides won’t necessarily differ from a typical bank, its ethical stance could be a useful way to decide between similar banking products it and another provider offer.
FSB provides members with a business bank account through The Co-operative Bank. This bank account is designed to help meet the day-to-day needs of a business and entitles members to a range of additional benefits. This includes:
To find out more about FSB Business Banking or how the FSB can help you, visit our FSB Business Banking page or speak to a member of our team.
FSB members are entitled to a specially tailored bank account from the Co-operative Bank, giving you the freedom to focus on running your business.