Starting a business is an exciting adventure—but when it comes to setting up your finances, it can feel a bit overwhelming. One common stumbling block for new startup founders and small business owners is knowing how to manage banking. The truth is, getting your banking setup right from the start can save you a lot of time, money, and stress down the line.
Here’s our guide to the key dos and don’ts of startup banking, so you can build a solid financial foundation for your business.
A business bank account isn’t just a necessity; it’s a statement. It separates your personal finances from your professional ones, making life simpler and much more professional. No one wants to juggle messy spreadsheets or have clients questioning your credibility.
With perks like expense cards, payment tracking tools, and integration with accounting software, the right business bank account can take the pain out of managing your finances and give you more time to focus on growing your business.
It might be tempting to use your personal account when starting out—it’s easier, right? Wrong. Not only is it harder to untangle personal and business transactions later, but it can also make your business look less professional to suppliers, clients, and the tax office.
With a business account, you’ll enjoy features like direct integrations with accounting tools, clear financial records, and the ability to scale your operations later.
Pro Tip
If you’re just starting out, check out banks like Starling Bank, Tide, or Capital on Tap. They’re designed with startups in mind, offering perks such as no monthly fees, quick account opening, and easy tools for managing money on the go.
Not all bank accounts are created equal. Look for features that make your life easier, such as:
Research how each bank aligns with your current needs while also supporting future growth.
Messy books are the last thing you want in business. With a proper business account, you can link your transactions directly to accounting software, ensuring your books are up-to-date and audit-ready. Plus, tools like automated categorisation and invoicing save massive amounts of time.
For Example
Want to ditch those late-night bookkeeping sessions? Choose a bank like Tide for built-in accounting tools or use Capital on Tap for seamless Xero integration that maintains your records on autopilot.
It’s never too early to start building a positive financial track record. A healthy business account history is essential if you want to secure loans, investors, or even partnerships in the future. Banks and lenders look at your financial habits—so start strong!
Remember: Your first steps in banking can determine how easy it is to access credit or funding later.
Stashing business income in your personal account might seem harmless at first, but it creates unnecessary complications. Come tax season, you’ll regret not having separate financial records to track every business expense. And trust us, the tax office doesn't take kindly to jumbled transactions.
Avoid the headache by drawing the line early—keep your business and personal purchases far away from each other.
Traditional banks have their perks, but fintech startups are redefining business banking. From mobile-first platforms like Starling Bank to all-in-one tools like ANNA Money, fintech banks offer flexibility, speed, and innovative features that traditional banks can’t match.
Bonus Points
Many modern banks also don’t have minimum balance requirements, which is great for lean startups. Take advantage of extra tools like payment reminders, multi-currency options, or cashback credit cards.
Manually managing spreadsheets and transactions is a surefire way to burn out. Use a bank with automation features like direct accounting software links, payment alerts, and automated expense classification.
Automation saves time and reduces human error, letting you focus on what really matters—growing your business.
Thinking you’ll wait until sales take off before opening an account? Big mistake. The earlier you set up your account, the easier it will be to manage your financial records and track cash flow. Plus, starting early means you’ll already have a clean, well-documented financial track record when your business scales.
Need help choosing your first business account? Here are some of our recommendations for startup founders and small businesses:
Setting up your business banking may seem like a small step, but it’s one that will have a lasting impact on your startup’s success. A well-chosen bank account ensures professionalism, saves time, and sets up your business for financial growth.
Take the time to select the right tools for your unique needs—and don’t forget to prioritise features like automation, financial tracking, and scalability.