When you’re starting a new business, there are lots of things to think about and account for. These may all seem like small details, but they can have a big impact on the success or failure of your business. Thinking about which type of company you want to register as, whether to hire staff or work as an independent contractor, and which accounting principles your business will use are just some of the early considerations you need to make before getting started on your new business.
We know from experience that launching a company is a lot of work and requires careful planning. That’s why we’ve created this comprehensive guide to opening a current account for your startup.
As a startup, your primary focus is on growing your business. You need to keep costs as low as possible without sacrificing necessary features. A good way to do this is by finding a business current account that suits your needs and keeps operating costs to a minimum. If you’re starting up or thinking about launching a new business venture, it’s essential that you find the best current account for your needs and budget. To help you find the most appropriate option for your business, we have created this ultimate guide to the best current accounts for startups.
Read on for insider insights into what banks look for in potential clients when considering whether to grant them an account; the different types of accounts available; the pros and cons of the most common types; what documents you’ll need; and how to open one.
What is a Current Account for a Startup?
A Current account is a type of bank account that is used for managing your business’ financial transactions and keeping your books in order. It’s designed for businesses to keep track of income and expenses and to manage their finances.
A business current account is often referred to as a business bank account, a business current account, or a corporate current account. It allows you to deposit money from your business and pay bills, as well as transfer funds between employees and departments.
It’s important to understand that a business current account is different from a business savings account or a business checking account. Business savings accounts are used to deposit money that you intend to use in the short term, whereas business checking accounts are used for managing your ongoing business expenses.
How to choose the best current account for a startup?
Choosing the best business current account for your startup can be challenging, especially when you have little or no experience dealing with banks. To help you make an informed decision, we’ve compiled a list of things to keep in mind when choosing a current account. –
- What do your company’s financial needs look like?
- What’s your company’s monthly turnover?
- What are your company’s long-term financial goals?
- How many employees will be using the account?
- How easy is the account to use?
- How much does it cost?
Things to know before opening a current account
- Fees and charges – Before you open a current account, make sure you know how much it will cost to use it. Pay attention to monthly account fees, transaction charges, and minimum balance requirements.
- Choose a bank that fits your needs – When choosing a bank to open a current account, don’t choose a bank just because your friends or colleagues use it. Instead, choose a bank that meets your company’s specific needs.
- Keep your business and personal finances separate – Even though the bank will combine both types of accounts, it’s important to keep your business and personal finances separate.
- Choose a bank with online and mobile banking services – Make sure the bank you choose provides online and mobile banking services. This will make managing your finances much easier.
Types of Current Account
Business Current Account – A business current account is a type of bank account specifically designed for businesses to keep track of their finances.
Business Savings Account – A business savings account is an account used to deposit money that you intend to use in the short term. This can be useful if you regularly need to pay for certain expenses that are not covered by your business account.
Business Checking Account – A business checking account is an account used to manage your ongoing business expenses. It can also be used to receive payments from your clients.
How to open a current account
The first step to opening a current account is to choose a bank. You can use our list of the best current accounts for startups to help you out. Once you’ve decided which account to open, you can contact the bank and ask about current account options for businesses. Here are some things to keep in mind when opening a current account. –
- Know your company’s financial needs – Before you open a current account, make sure you know your company’s financial needs. This will make it easier to compare different account options and choose an account that best suits your needs.
- Contact multiple banks – When opening a current account, contact multiple banks and ask about their account options for businesses. This will help you compare different account features and choose the one that best suits your needs.
- Compare features and costs – Once you’ve selected the current accounts that best suit your company’s needs, it’s time to compare their features and costs. This will help you choose the best account for your business.
- Choose an account that meets your needs – After comparing multiple account features and costs, you should be able to select an account that meets all of your company’s needs.
Documents required for opening a current account
When opening a current account, you will be required to provide certain documents to the bank. Depending on the type of account you have applied for, some banks may require more documents than others. Here are some of the documents you can expect to provide when opening a current account. –
- A copy of your company’s incorporation documents – If your company is incorporated, you will be required to provide a copy of your articles of incorporation.
- A copy of your company’s certificate of business – If your business is registered, you will be required to provide a copy of your company’s certificate of business.
- A copy of your company’s insurance – If your company is insured, you will be required to provide a copy of your business insurance policy.
Bottom line
Choosing the best current account for your startup and navigating the features and fees of each account can be challenging. To make the process easier, it’s important to know your company’s financial needs, what features you need in a current account, and what each account will cost.
A business current account is a type of bank account that is specifically designed for businesses to keep track of their finances. A business savings account is an account used to deposit money that you intend to use in the short term and a business checking account is an account used to manage your ongoing business expenses.
When opening a current account, you will be required to provide certain documents to the bank and select an account that meets your company’s needs.
