Hello, aspiring businessmen! When you come up with an idea for your business, you’re faced with a lot of problems that need to be solved. You have to register your business, design your website, recruit staff, and then, there’s the question of opening a business account. A lot of bureaucracy, different papers, and multiple signatures — every entrepreneur goes through all these processes. In our article, we’d like to tell you why it’s best to open business account, although it’s not required by law. Moreover, you will also find out where it is best to open such a business account and what financial services will be available to you.
What Is Business Account, and Why Do You Need One for Your Business?
A business account is an account of a legal entity or individual entrepreneur, designed to hold money and perform transactions and other financial services related to business activities. In simple words, it is the same bank account as an individual one, only for business. With its help, an organization or individual entrepreneur can collect revenue, pay suppliers, use bank transfer money to pay taxes, distribute salaries to employees, and more. In general, when you open business account, you can easily perform the financial services of your organization necessary for the normal conduct of business activities.
What financial services are available with a business account?
By opening a business account, you get access to an extended list of financial services, including:
- receiving money from customers (i.e. accepting payments through online acquiring);
- fast operation with payment gateways;
- bank transfer money for salaries to your employees;
- receiving payments for rent, goods, work, or services from counterparties;
- acceptance of payments from suppliers and contractors;
- paying taxes and contributions to Pension Fund, Social Security Fund, etc.;
- participation in state tenders.
A business account helps legal entities to operate within the law. In most countries of the EU (for example, Germany, Austria, Poland, etc.) the law specifies that organizations have no right to pay taxes, penalties, or fines in cash. The only option for them is to transfer money from the business account.
Bank or e-Money Financial Institution: Where to Open a Business Account?
Today, to receive financial services, it is not necessary to open an account at a bank. In addition to banks, there are many other institutions that can provide you with services to run your business. An example of such an institution is Genome Account, which is considered the market leader in e-money in the EU.
When choosing which bank/e-Money institution to open a business account at, consider the following points:
- What commission is charged for cash withdrawals?
- Whether there is a fee for depositing money into the account? Some banks require a fee for deposits above a certain amount.
- Convenient online banking for tracking financial transactions and your account balance.
- Reliability of a financial institution. There are a lot of fraudsters on the Internet, and there are also banks that conduct their activities illegally.
- Check for monthly or annual account maintenance fees. If you do not clarify this point in advance, you may be unpleasantly surprised by the bill for services.
- The possibility of opening a plastic card and eWallet to the account and its cost. The card is needed for fast cash withdrawals, and the availability of the eWallet is important for receiving money.
What Are the Advantages of Genome Account over a Regular Bank Account?
Genome is a high-tech institution that provides quality services all over Europe, from Austria to Belgium. It is licensed by the National Bank of Lithuania, which guarantees the security and safety of your money. Unlike national banks, Genome works the same in every country, and commissions do not depend on your location. To open a business account with different currencies (Genome has different currencies available for businesses, such as GBP, EUR, and USD), you do not need to waste your time on queues. You can open such a multicurrency account (GBP, EUR, and USD) in just a couple of clicks. When you open an account with Genome, you also get an eWallet, which makes sending and receiving money several times faster and more convenient than with a regular bank.
