By Orla Eastwood, Strategic Partnership Manager, Swoop
Keeping track of your company’s financials as a business owner, whether it’s day-to-day cash flow concerns or long-term tax readiness, can be challenging. Separating your operating cash from long-term money needs, such as small business taxes, can be a great way to simplify things.
At Swoop we have lots of customers asking us, ‘Can I have two business current accounts?’ Usually the business has an account with a traditional bank, but on seeing the exciting features that the digital accounts are offering, are keen to try them out.
The good news is any business can have multiple accounts, so long as the provider approves the application. So if you have a business account already, and want to open a new one, there are two options:
Open a second business account
Most business customers we speak to at Swoop are surprised to find out that they can in fact open an account with one of the digital providers, while keeping their account with their traditional bank open. The biggest upside to this is it allows you to separate your business finances easily.
You could decide to use your new digital account to automate your book keeping and improve your cashflow(Paytron) or take and pay customers in foreign currencies (Airwallex).
The account you already have with your traditional bank can continue to be used for managing payroll, holding large deposits and to set aside money for tax payments. You may also decide to continue to have your large regular payments serviced by this account, leaving your new account for day-to-day expenses and ad hoc payments.
Switch Business Accounts
Did you know banks themselves have been required to help facilitate the handover of direct credit and debit setups since 2012. Your new provider will work with your old provider to switch your payments and transfer your balance while your old provider works to ensure your account is closed. Once you apply for a new account, you can select the date for your switch, and the rest will happen automatically within 7 days. This may be the right option for you if you’d prefer not to have to keep track of money in different places.
There are clearly lots of upsides to having more than one account. What is important is that you have a clear understanding of what your strategy will be for using them, and that you choose the right account for your business needs. To find out more about the accounts mentioned above, as well as other providers, visit Swoop’s Business Current Account Comparison page.