How to Choose the Best Business Bank Account
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A business bank account is an essential part of your business setup. Working with a great bank that understands your business needs and can make your business accounting easy and inexpensive will get your business off to a flying start.
The Penta Business Account has been designed from the very beginning to have the needs of business customers in mind. That’s why the Penta account is perfect for helping your business and meeting your banking requirements.
Why should you open a business account?
Whether you are just starting on your business journey, or have been in business for a while, opening a business account is essential. Separating your business transactions from your personal transactions means you can simplify your accounting and more easily track how your business is doing.
Having a bank account in the name of your business is also more professional when dealing with your customers. It shows your potential customers that you are a serious business, and reassures them. Asking your customers to pay into a personal account doesn’t give the same level of confidence in your business.
As your business grows, a business bank account can also offer additional services that a personal account cannot, making it easier to control your finances.
Type of business account
There is a range of different business accounts available, but here I want to concentrate on the choice of a digital bank compared to a more traditional bank.
A digital bank will offer you a purely online business bank account, whereas a traditional bank will provide you with a bank account that may have online banking as an added feature. In some cases, you may need to pay a fee to access the online banking feature, and sometimes not all banking features can be utilized online.
For many new businesses, a purely digital bank account is the perfect option. They are perfect for a business that operates online, such as an eCommerce website, or companies offering digital services such as website development and social media management.
That said, most businesses will benefit from paperless digital banking, which makes running your business much more straightforward.
What features does the business account offer?
As a business, you need to concentrate on your area of expertise and employ experts to carry out other functions, and this is equally true of business banking.
A good business bank account offers features to make the running of your account simple. The account should include a user-friendly online system, straightforward ways to arrange transactions, direct debit facilities, a debit card, and advanced features such as linking your bank account to your accounting system.
A Penta business bank account offers all these features and more.
Bank account costs
Some traditional business bank accounts included high charges for services, and often the charging structure was very complicated. To simplify this, banks offered packages for a fixed monthly fee. The problem here is that the packages often included items you rarely, if ever, use. In effect, you are paying for something you don’t need.
Penta has taken a much simpler approach to package pricing plans so that you only pay for what you need.
Documentation required to open an account
There are two sets of documents required to open a bank account, personal documents for the people involved, and documents relating to the company. If you are a sole proprietor, then the company documents are not required.
For personal identification, you will need to provide a copy of your passport or identification card.
For the company verification, you will need the incorporation documents, or if the company is in the foundation stage, the foundation document should be provided.
Benefits of a Penta Business Account
The main advantage of a business account is to keep your business transactions distinct from your personal transactions. Doing this is invaluable when it comes to submitting your annual profit and loss declaration or your quarterly sales tax return.
Imagine your accountant trying to decide which transactions were personal and which were business-related. That alone would mean a much higher accounts bill.
Opening a Penta business account is very easy and offers many benefits;
- Easy opening process. Everything is done online, including uploading your documents
- Although it is digital-only, your Penta account still has a German IBAN, making transactions simple
- Your first Business debit card is free
- Your money is covered by the standard deposit guarantee, which includes the first €100,000 in your Penta account
- Your account integrates with several online accounting systems, automating your accounting process, and keeping your accounts up to date. This is a real time-saver that will also save you money
- As your business grows, your Penta account can be used to enable your team, with employee Visa cards. Receipts can be attached to relevant transactions in your account
- You can allow your team to set up payments, ready for you to approve as a batch
Open a Penta Business Account today to simplify your accounting and keep your accountant happy!
Most commonly asked questions
How easy is it to open a Penta Business Account?
We make opening your Penta Business Account as easy as possible. It takes just a few minutes to follow the account opening process.
How quickly will my account be open?
It will take us a few days to verify your account and activate it.
What documents do I need to open a Penta business account?
For yourself, you will need a passport or identity card. You will also need to upload the company incorporation documents.
Can you help me switch to Penta from another bank?
Yes, contact our brilliant customer support team, and they will help you switch your account with the minimum of fuss.