Essential Bank Accounts for Self-Employed Professionals
Sole traders have unique banking requirements, and though it is not required by law that they have a dedicated business bank account most experts agree it can be very useful. A business bank account can make it easier for the sole trader to keep business expenses separate from personal expenses and to track income for tax purposes.
But not just any business bank account will do. Some offer definite advantages over others when it comes to providing the features and services you need to facilitate success. In this brief guide, we profile the top 5 bank accounts for the self-employed as well as the advantages and disadvantages they provide for the sole trader.
Additionally, using a business bank account can streamline financial management, providing easier reconciliation of transactions and simplifying bookkeeping. This separation can also make it easier to present accurate financial statements when seeking credit or investment, which can be crucial for business growth.
Key Features of Self-Employed Accounts
Many bank accounts for the self-employed offer features like integrated bookkeeping tools and expense categorisation. These tools simplify financial management and tax reporting, making it easier to keep accurate records and file taxes efficiently. Additionally, some accounts provide invoicing capabilities, mobile banking apps, and dedicated customer support to help you manage your business finances on the go.
Benefits of Choosing the Right Account
Selecting the right bank account can enhance cash flow management and improve financial organisation. This helps in maintaining clear separation between personal and business finances. Additionally, it can simplify the process of applying for business loans, improve your credit score, and provide access to valuable financial insights through detailed account statements and analysis tools.
87% of self-employed professionals prefer accounts with integrated financial tools. These features support better expense tracking and tax management, significantly improving their overall financial health.Top Bank Account Statistic
75% of self-employed individuals report higher satisfaction with bank accounts offering dedicated business support features, including expense management and invoicing tools.Key Account Usage Statistic
Advantages of Opening a Business Account with Revolut
Disadvantages of Opening a Business Account with Revolut
Advantages of Opening a Business Account with Barclays
Disadvantages of Opening a Business Account with Barclays
Advantages of Opening a Business Account with Tide
Disadvantages of Opening a Business Account with Tide
Advantages of Opening a Business Account with ANNA Money
Disadvantages of Opening a Business Account with ANNA Money
Advantages of Opening a Business Account with Wise
Disadvantages of Opening a Business Account with Wise
Summary
The best bank accounts for sole traders make it easy to open and manage an account, easy to create and track invoices, easy to track business income and expenses and offer round-the-clock customer service. Where many of them falter is in providing a way to keep tabs on your tax status in real-time. That's where the Pie app comes in. The Pie Tax App is completely free to use, find out what features are included here:
How is Pie different?
Pie is the only app for self assessment with tools for bookkeeping, your live tax figure, easy tax returns and helpful advice when you need it.
Save £168 per year vs Quickbooks, file your self assessment today for free with Pie
FREE
£69
+£59.99
£149
Quickbooks
£168
per year7 features
TaxScouts
£169
per year4 features
Accountant
£450
avg per year5 features
* Optional add on
Frequently Asked Questions
What features should I look for in a bank account for self-employment?
Look for accounts with no monthly fees, integrated bookkeeping tools, and easy expense tracking features. These features help streamline financial management and tax preparation.
How do I choose between different business bank accounts?
Consider factors such as fee structures, customer support, and integration with accounting software. Compare these aspects to find an account that best meets your business needs.
Are there any bank accounts specifically designed for self-employed professionals?
Yes, many bank accounts are tailored for self-employed individuals, offering features like expense management and invoicing tools. Accounts from Barclays, Starling, and Revolut are notable examples.
How can the Pie Tax App assist with managing my business finances?
The Pie Tax App helps manage financial records, track expenses, and ensure compliance with tax obligations. Expert tax assistants on the Pie app provide valuable guidance and support.
What are the benefits of using a bank account with integrated financial tools?
Integrated financial tools simplify expense tracking, tax reporting, and financial management. They help maintain clear separation between personal and business finances, saving time and reducing errors.
