We have teamed up with Tide to put together some tips on how to make your business finances easier.
How to take the admin off your plate
Being self-employed comes with the freedom and luxury of making your own choices. The flexibility to choose your own hours and work when it suits you is the envy of office workers.
But being your own boss is not without its challenges. Admin is annoying. Banking is a burden.
It doesn’t have to be hard.
Separate your personal finances from your business income
Separating your personal finances from your business income helps to eliminate a lot of the hassle. Having one account for your personal funds and another for work means you’re more likely to pay the correct amount of tax and reduce the risk of spending your earnings on personal purchases. There are an estimated 4.7m self-employed workers in the UK and many still have all of their cash in the same pot - yet they struggle when it comes to filing tax returns and expenses.
Open a business current account
Opening a business current account used to be a time consuming process. But with new services like Tide, sole traders and business owners can be up and running with an account in five minutes - instead of waiting weeks for one to be opened with a high-street bank. Simply scan your ID, confirm your details and take a security photo. Business banking has never been this easy.
We know that being self-employed comes with boring administrative tasks that get in the way of real work. In a recent survey by software company Sage, it was found that people who work for themselves waste up to 120 days each year on admin. Furthermore, in 2019, Making Tax Digital will start forcing business owners to keep digital records of their finances, updating HMRC on a quarterly basis.
Modern banking services can help eliminate this admin. Tide categorises your payments and expenses in real-time, and allows you to save comments and attachments directly in your bank feed. You can stay on top of your finances as they happen, knowing that you won’t be frantically trying to get organised when it’s time to file your tax return.
How Tide can help you
Finally, we’ve all been burned by banks on fees in the past. And high-street bank accounts can cost business owners hundreds of pounds per year to run. But by removing costly physical branches and by using technology to drive efficiency, digital banks have become incredibly cost-effective. Unlike traditional banks, Tide won’t charge you a monthly account fee. You can use your debit card for free. And you pay only a small amount for the bank transfers and ATM withdrawals that you make.
At Tide, it’s our goal to make your life easier, so we’ll always be coming up with new, exciting ways to keep you on top of your game.