For many start-up companies setting up a business bank account is just one possible option when starting a business. It is, from the first day of independence, of utmost importance to separate private and corporate accounts. Only in this way can a financial overview be reliably guaranteed.
Table of Contents:
- Advantages of a start-up account at a glance
- Overview of growth with a business account
- Benefits of a good start-up bank account
- Quick account opening with FINAVI
- Full financial manager as a guidance tool
Advantages of a founder account at a glance
The separation of private and corporate assets makes sense from a business perspective. Only in this way you can obtain reliable and meaningful information about the income-expenditure situation and all the payment transactions of a young company and its development. This important and detailed overview forms the basis for further measures, such as the pricing of services offered or the development of targeted cost-cutting measures. Nevertheless, many start-up companies forgo a separate business bank account.
Three reasons for a company account and related subaccounts:
- Overview of revenue and expenditure
- Make accruals on a business account
- Clear separation facilitates accounting
Since, of course, private living costs must be covered, the young entrepreneur receives a pre-defined salary, which he transfers from the business to the private account.
Growth at a glance with a business bank account
Although business accounts are low-cost, they provide many benefits in return, which have a positive impact on company growth. This is mainly due to a well-structured financial overview. Because the company account contains only financial information about the start-up; from the first booking onwards.
By separating from the private account, the young entrepreneur receives information about the current financial situation at any time and identifies important trends. With a single look at the numbers, the young entrepreneur examines the profitability of his newly founded company. This puts him in a position to react early. If private and business accounts are not kept separate, a fast and professional control of business success is almost impossible. But even the preparation of detailed analyses can take a huge effort in the case of non-separated accounts and the statistical evaluation of the company's success is considerably more difficult.
Benefits of a good start-up account
A good start-up account is characterised by fair costs. Nevertheless, a corresponding scope of services is required and, ideally, the new company account adapts to the requirements of a start-up company.
Although the cost factor plays an important role in starting a business, it should by no means be given top priority. Much more important are various services included in the price:
- All transfers included
- A view of major future transactions
- Interest-favourable disposition and overdraft facilities for better liquidity
- The ability to integrate existing accounts and open another account
When opening the business account, a subaccount should be opened at the same time. This special account further facilitates the overview of the financial situation of the company. Because it serves to form reserves. A company requires this for a variety of purposes such as VAT, applicable taxes and duties, required investments and various other payments. Depending on the size of the company, multiple subaccounts are often required. If payment is required, the required amount will be transferred to the main account.
Quick account opening with FINAVI
As a renowned service provider FINAVI offers efficient business accounts. These adapt themselves exactly to the needs of business start-ups as founder account. But even companies already established in the market will benefit from the numerous advantages. For a small monthly fee all transfers are included as well as all direct debits. The entire account management is digital, whereby the scope of services can be easily adjusted with the growth of the company.
Fully comprehensive financial manager as a guidance tool
An indispensable instrument especially for start-ups is a financial manager tailored to their own needs. Designed specifically for planning and managing all payments incurred in a company, it helps control and provides important functionality to control various events. The potential integration of existing accounts further facilitates the management of finances, as a single tool provides the necessary overview. In this way, you manage your business finances professionally and transparently.
With the financial planner start-up founders have a valuable tool. One feature is multi-banking. It enables the integration of existing accounts and their management via a single piece of software. Especially for young entrepreneurs, trend analysis is indispensable. This tool calculates financial up and down trends and provides meaningful information about the overall situation of the company. Extensive role and task management supplements the functionality of the financial manager, because you are granting the necessary reading or editing rights to the information that a tax consultant or accountant needs to access for ordinary payments.
Benefit from the advantages of professionally managed business accounts with individually customizable service packages. We are happy to advise you in more detail on this topic.