If you're a small business owner, you know how important it is to stay organised. A business bank account with sub-accounts can help you do just that! This article will explain what a business bank account with sub-accounts is and how it works. We'll also cover some of the benefits of using one, as well as which types of businesses may benefit from having one. So sit back and relax—we've got everything you need right here:
What is a business bank account?
A business bank account is a checking account for your business. You can open it at any bank or credit union, and the money you deposit will be in the name of your business rather than yours personally. This means that you have access to all of those funds without having to worry about keeping track of receipts. This type of account also makes it easier for you to pay bills, make online transfers between accounts, and even spend money if needed. The flexibility helps keep things organised while giving you full control over how much money comes in—and goes out—of your business as a result!
Online and traditional banks
Online banks and banking service providers are generally cheaper, easier to use and have more online services (like wamo). Traditional brick-and-mortar banks tend to offer better support for brick-and-mortar businesses.
How does business banking work with sub-accounts?
When you open a business bank account with sub-accounts, you're given access to an online system where you can create sub-accounts. You'll use this system to transfer money from your main account to the sub-accounts, or vice versa. Each sub-account works exactly like a main account so you are also able to accept and make payments directly into any given sub-account.
Online banks and banking service providers are generally cheaper, easier to use and have more online services (like wamo).Traditional brick-and-mortar banks tend to offer better support for brick-and-mortar businesses.
Use them for bookkeeping purposes. Sub-accounts can be used as temporary holding accounts for cash that needs to be deposited into your main account later on. This way, each deposit will have its own transaction history—making it easier for you and others in your company who need access to accounting information from time to time (such as auditors). It also makes tracking expenses easier because every expense is tracked separately instead of lumped together under one category such as "office supplies."
Do I need a business checking account with sub-accounts?
A business checking account with sub-accounts is a great way to keep your finances organised and manage your cash flow.
How can sub-accounts help you? Well, they can:
Help you stay organised. If you have multiple businesses or projects, it's easy to get confused about which expenses are related to what.
Sub-accounts help clarify everything so it's easier for you to see where the money is going and how much each project costs.
Help keep your finances separate from one another. It's great if all of your money is put into one big pool of funds, but sometimes it's better not to mix them up if there are certain funds that should be treated differently from others (like personal vs business). Sub-accounts let you do this—you can create separate accounts for each company or project without mixing up their finances!
What type of businesses will benefit from a business bank account with sub-accounts?
If you have a business that has multiple employees and a lot of money coming in and going out, then it may be time to consider setting up an account with sub-accounts. Although not all businesses will benefit from this type of account, there are several reasons why it can be beneficial to your company's finances.
Here are some types of businesses that would likely benefit:
- Businesses with multiple employees (think marketing agencies or law firms)
- Businesses that need to keep track of a lot of money (think construction companies)
- Businesses that want to separate their personal and business funds for tax purposes
Open your wamo business account and create as many sub-accounts as you want
A business account with sub-accounts can help you stay organised and keep your money separated. This means that you’ll have more control over your finances, and it will make it easier to manage your money. A wamo business account allows you to open up to 50 sub-accounts (and more on request), free! For each sub-account you will choose whether you want that account to have an EU or GB IBAN. This means that you can expand your business into the eurozone and the UK without incurring international fees for transactions there. If you’ve decided that your business could benefit from having a business account with a provider that offers sub-accounts - then check out wamo!