Choose and manage a business bank account
Managing a business bank account
As your business grows and changes, you may find that the terms and conditions attached to your business bank account are no longer best for your business. It is important to regularly review the situation so that if this is the case, you can switch to a different account or negotiate to change the terms and conditions of your current account.
It is important to build up a good relationship with your bank. You should always try to keep to the terms and conditions attached to each of your business accounts.
Your relationship with your bank will also be improved if they understand your business. You can help them to improve their understanding by:
- talking to the person managing your account on a regular basis
- sending your accounts to the bank every year, if requested
- providing the bank with updated copies of your business plan when you need new loans or increased overdraft facilities - see tailor your business plan to secure funding
- letting your bank know if you plan any unusual transactions - eg significant capital expenditure
If you are unhappy with any the service you have received from your bank, in the first instance complain to your bank. If you remain unhappy, the Financial Ombudsman can provide details about complaining or resolving a dispute with your bank.
Beyond maintaining a good relationship with your bank, you can also manage your bank account more easily by:
- ensuring only appropriate persons are authorised to make payments from the bank account
- keeping records of all transactions in the bank account
- keeping and checking through your bank statements
- using your bank statements to check the financial position of the business
- cross-checking your statements with your business records to ensure that all transactions are correct
Online banking can make it quick and easy to check balances and payments - see online banking for businesses.