One financial expert has recently come forward to expound on the importance of business bank accounts.
UK small business owners should ensure that in addition to their own personal current account they also have a separate business bank account as well, says the business banking head of HSBC UK.
Huw Morgan recently commented that personal finances must be conducted separately from any business banking activities. The reason behind the separation according to Mr Morgan is to avoid the entanglement that can quite often occur.
Mr Morgan stated that firm based transactions are important enough to the vitality of a business owner’s firm to warrant the extra step. There were several reasons to designate a business bank account rather than employing a financial product designed for personal use according to the banking executive.
One such reason is that the monitoring of payments coming in and going out becomes much more simplified. Another reason according to Mr Morgan is that any potential issues that arise – such as the calculation of taxes and late payments – can be done both easily and quickly with a separate account.
One additional benefit to maintaining an account separate from personal finances is to build a positive reputation for small businesses, says the business banking head. doing so will communicate to other businesses that the one with which they are conducting business is managed well and responsibly.
In other recent news one HSBC competitior has begun offering attractive deals for businesses. Spanish banking giant Santander has recently announced a new incentive for businesses to use the bank for its business related needs. Santander is now offering a £100 bonus to all businesses who decide to switch from their previous bank to the Spain-based bank.