Our best business current accounts

A business bank account is a type of bank account specifically designed for businesses to manage their finances, keeping business transactions separate from personal ones.

It provides essential banking services and makes life easier when it comes to tax returns, audits and cash flow management. Specific business banking statements can also be helpful in business plans if you're looking to grow and need to quickly evidence your business' performance.

A business current account works like a personal current account but with additional features tailored to meet the needs of businesses. It allows you to deposit and withdraw funds, write and cash cheques, make electronic payments, receive payments from customers, access banking services online or through mobile apps and, subject to checks, have a business overdraft facility.

While it is not a legal requirement to have a business current account for most businesses, it is highly recommended for several reasons:

• Keeping personal and professional finances separate makes accounting and tax reporting significantly more straightforward.

• It lets customers and suppliers know that you're professional and credible. They prefer dealing with businesses that have dedicated business accounts, so by having one you can show you mean business.

• Features such as overdraft facilities and the integration of things like accounting and payroll software can make time consuming tasks much more straightforward.

• Many business banking services are specifically designed to improve efficiencies around financial management.

By not having a business bank account you could run the risk of filing an incorrect tax return. If you use an accountant, they could miss important transaction history.

And if you run a limited company - then you are required by law to keep your company finances separate due to the fact that its a separate legal entity.

To open a business current account in the UK, you will typically need to provide the following:

• Proof of identity: This can include your passport, driver's license, or national ID card.

• Proof of address: Utility bills, bank statements, or official letters showing your name and address.

• Business documentation: This may include your business registration certificate, partnership agreement, or articles of association.

• Personal and business financial information: You may need to provide details of your personal and business income, assets, and liabilities.

Switching bank accounts is certainly an option available to you, just as it is if you want to switch your personal bank account.

With a business account, the reasons for switching may differ though. Some reasons you might choose to switch to a different business bank account include:

Fees - you might be coming to the end of a fee-free period with your existing bank account, so switching to a new account that offers a fee-free period might be attractive.

Overdraft - many businesses rely on their business overdraft. As this is typically a feature of your business bank account, it's always worth keeping an eye on overdraft rates with different account providers. You might be paying more than you need to.

Integrated features - some business bank accounts allow you to integrate helpful and time-saving features. These might be accounting software to help make tax returns and financial planning easier. It could also be payroll software, speeding up a typically time consuming activity.

Service - you might have received some disappointing customer service or a complaint may have been handled poorly. This can be a common reason to look at business banking elsewhere.