Why would a sole trader want to open a business bank account?

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Hey there,

As a sole trader, would it make sense for me to try and open a business bank account? Just keen to know what the benefits might be.

Answers

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Hi,

It’s a great idea to open a business bank account, whether you’re a sole trader or are trading through a limited company because you will benefit from better financial management. By setting up a separate account to receive payments from clients or customers and pay for business expenses, you will keep better track of your credits and debits. This will make your life easier when completing your Self-Assessment tax returns.

You can use your personal current account for business purposes, but it take more time to look through your statements at the end of every financial year to highlight business credits and debits and complete your tax returns.

a year ago
 

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