Setting Up Your Business Finances: The Ingredients for Success
Just like prepping your kitchen before cooking, sorting out your business finances early saves stress, time, and tax headaches down the line. If you don’t have the right tools or keep things organised, it’s a recipe for disaster—especially with Making Tax Digital (MTD) now in full swing!
Let’s dive into the essential ingredients for financial success: business bank accounts and accounting software.
Best UK Business Bank Accounts – Your Store Cupboard Essentials
Choosing the right business bank account is like stocking up on the essentials—you need something reliable, cost-effective, and suited to your needs.
Starling Bank – Digital-first, no monthly fees, multi-currency accounts, real exchange rates and transparent fees, and seamless integration with accounting tools like Xero & QuickBooks.
Tide – Ideal for start-ups and freelancers, offering expense tracking & invoicing, plus simple business banking.
Metro Bank – Known for great customer service, offering 18 months of free banking for new businesses.
HSBC Business Account – Provides 12 months of free banking, plus access to a relationship manager.
Revolut Business – Perfect for multi-currency accounts and international transactions, making it great for global businesses.
Mettle – Free business banking with FreeAgent included, provided you make at least one transaction per month.
NatWest, RBS, Ulster Bank – All offer FreeAgent for free with their business accounts—a great perk for start-ups.
BIG TIP: You don’t need to be registered with HMRC to open a business bank account! Keeping personal and business finances separate from the start makes tax season far less stressful. Read more here.
Best UK Accounting Software – Your Kitchen Appliances
A business without accounting software is like baking without measuring cups—you might get close, but it’s going to be messy!
With Making Tax Digital (MTD) requiring businesses to use software instead of spreadsheets, it’s time to find the right tool. I will be talking about MTD in more detail in a few weeks.
Xero – A powerful option with bank reconciliation, invoicing & VAT filing, ideal for small businesses.
QuickBooks – A solid all-rounder offering expense tracking, financial insights, and automated tax calculations.
Mertle – A newcomer focused on simplicity & affordability, perfect for micro-businesses.
Zoho Books – Great for inventory management, sales tracking, and real-time financial insights, at an affordable price.
FreeAgent – A brilliant choice for freelancers & small businesses—and free with NatWest, RBS, Ulster Bank, and Mettle business accounts.
Why You Should Ditch Spreadsheets for Accounting Software
Spreadsheets used to work for keeping track of expenses, but Making Tax Digital (MTD) now requires businesses earning over £50,000 to submit tax records digitally using accounting software (and those earning over £30,000 will need to comply from April 2027).
If you’re still manually entering figures in a spreadsheet, it’s like trying to bake a perfect cake using guesswork instead of a proper recipe—you’re bound to make mistakes, and HMRC isn’t forgiving when it comes to tax errors!
By switching to cloud-based accounting software, you:
Stay MTD-compliant and avoid penalties
Automate bank reconciliation and invoice tracking
Make tax returns easier and more accurate
Final Thoughts – Don’t Let Your Finances Burn!
Just like forgetting to set a timer in the oven, ignoring your financial setup early on can lead to chaos later. Getting the right bank account and accounting software now ensures you stay organised, avoid tax stress, and focus on growth.
Feeling unsure about where to start? Let’s chat—I’ll help you choose the right tools, bank accounts, and financial systems to keep your business running smoothly.
