Part 3 – Set up Business BankingPosted 02/05/2014 by Rebecca Cannon
Set up Business Banking
Set up a small business bank account as early as you can, so that your costs can be kept separate from personal bills. Many banks offer 12 months of free business banking (then there’s an annual charge). Some also offer advice and extra services (Barclays has an online community for business owners), so shop around using a site such as Moneysupermarket, and find one that suits you. However, we have found that both Lloyds Bank and NatWest have excellent Start-Up Business Accounts, currently offering 18 – 24 months free day-to-day business banking.
PayPal for Business
With one simple PayPal account, businesses can now accept most forms of payment.
PayPal is a trusted way to get paid and your customers don’t actually need a PayPal account – they can make a one-off or occasional payment without registering for an account.
It’s free for your customer to securely send funds and you don’t have to directly deal with your customers credit or debit card details.
There is a fee of 3.4% + 20p per transaction charged to the business so you need to factor this in when pricing your cakes.
You can also create and send a professional invoice in minutes which includes a “Pay Now” button to get paid fast – which is handy when asking for the initial deposit for your cakes!
For the purposes of accounts, it is easy to track and trace payments and you can print off the invoices to file away in your monthly accounts folders, helping you keep records of everything you’ve invoiced and been paid for.
When you’ve received payments from customers, it goes straight into your PayPal account – in many cases, it shows up almost immediately. Money can then be transferred back to your business bank account; this transaction takes an average of three to five days.
Read on… Part 4 Make a Realistic Financial Plan