So, you've embarked on an exciting business journey. Congrats! Whether you're just setting out as a sole trader, or just scaling up to SME, you're undoubtedly as busy as busy can be. With so many tasks demanding their own slice of your divided attention, it's easy to overlook one crucial aspect of growing your business: opening a dedicated business account.
We're here today to answer all the most common queries around business accounts. We'll also be explaining the kinds of benefits you can expect a business account to bring. Because it's not just a good idea to have a business account - it's essential.
Business accounts for sole traders: simplify your finances
Freelancers, fledgling entrepreneurs, or those of you just starting out a business might be wondering why you should bother applying for a business account when you've got a personal account you could use.
But it's exactly that kind of thinking that lands you in a pickle when tax season rolls around. It can also put clients off from your company and make you miss out on time-saving tools.
01. Make expenses more efficient
When working for yourself it's tempting to use your personal account for business transactions. That's especially true if you've just started out as a sole trader.
But merged finances are a headache when the time comes to track your business expenses.
A dedicated business account helps you to keep things neat and tidy. That makes it way easier to identify your business incomings and outgoings later down the line.
02. Look more professional
First impressions are vitally important when you first start trading. And when you're sending out client invoices requesting payment into a personal account, that first impression you put out of confident, capable credibility might just start to erode.
A business account demonstrates to your clients, well, that you mean business.
It's a signal that you're a proper professional. It's also a good indicator for that client that you're going to be good to do business with.
03. Streamline your taxes
Tax seasons's stressful enough even when everything's filed away perfectly. Sole traders whose personal and business lives are a big muddled mess are making it harder than it needs to be.
Having a separate business account simplifies the process. All your business transactions are in one place, making it easy to give your accountant accurate info first time.
04. Access business tools and services
Many business accounts (including wamo!) come with extra features tailored towards entrepreneurs.
Common features include:
- Built-in invoicing tools
- Help and advice from financial experts
- And better rates for business loans
These extras can help you manage, and grow, your business more efficiently.
05. Gain financial insights
A dedicated business account gives you a clear picture of your business's financial health at a glance.
This means you can track revenue, manage payments and identify trends without having to comb through your personal bank statement every month.
These kinds of insights are invaluable to a scaling business, and will help you to make stress-free strategic decisions.
Business accounts for SMEs: support your growth
For all you SME owners, managing your finances efficiently is the key to sustaining your growth and scaling your operations.
A dedicated business account streamlines your systems. It makes it easier to manage your finances, and will support your business as it evolves.
01. Manage cash flow efficiently
Cash flow is, of course, the lifeblood of any SME.
Having a dedicated business account allows you to monitor that cash flow closely. It ensures you can always cover expenses with enough left over to invest.
With built-in features like automatic transaction categorization, a business account means you always know where you're money's off to.
02. Access financing options
Simply put, banks are more likely to offer loans to businesses with dedicated business accounts.
Access to this kind of funding is crucial for scaling operations. It also means you can stock up on inventory or cover unexpected costs as they arise.
If you aren't able to access financing because your company doesn't look legit, you might end up missing out on funding just when you need it most.
03. Streamline payroll
Managing payroll and expenses, especially when your team is growing rapidly, can be super-complex, time-consuming and easy to mess up. And a bungled payroll is a shortcut to having unhappy staff.
A business account simplifies payroll and expenses with clever integrations and easy interfaces.
By attaching your dedicated business account to accounting and payroll software in this way, you'll ensure everything runs smoothly and accurately. Easy process = happy team.
04. Enhance your security
Most business accounts come with built-in security features specifically suited to meet business threats.
From advanced fraud detection to extra-secure payment processing, a business account's advanced security features help to safeguard your business.
Having that sense of security is invaluable for an SME. It gives you the safety net you need to take the calculated risks innovation demands.
05. Build business credit
Just like individuals, businesses have credit scores that lenders will analyze when you seek financing.
Using a business account regularly, and responsibly, can help build that credit score up.
A healthy credit score will be essential to negotiate the best possible loan terms with lenders. It also enhances your business's financial reputation, clearing the path to profit.
Why choose wamo for your business account?
At wamo, we understand the unique challenges faced by solopreneurs and SMEs. That's why we've designed our business accounts to offer maximum flexibility, security and support.
From easy in-app invoicing to comprehensive financial management for growing businesses, wamo's got you covered. And our accounts integrate seamlessly with all the most popular pieces of accounting and payroll software, making it easier than ever to manage your finances in one place. Plus our generous cashback and referral campaigns reward you for running your business.
Final thoughts
Having a dedicated business account is more than a convenience - it's a necessity for anyone serious about their business.
For solopreneurs, a business account means simplified finances and enhanced professionalism. For SMEs, a business account means streamlined ops, easier access to financing, and robust security.
And when you choose wamo, you're getting more than a business account. You're getting a partner, dedicated to your success. So, ready to take your business to the next level? Open a wamo business account today and experience the difference for yourself!