Business Plan?!?!?!

[acat]

When i say bought i meant "acquired" just didn't want to get into any trouble!

Thats better free, acquired I understand pay is a word that brings me out in a rash


Chris

 

[robsparx]

you really shouldn't need a business plan to open a business bank account

an accountant friend of mine also pointed out to me that you dont exactly NEED a business account anyway. as long as you can easily pay money in and out, it doesn't matter what the account is for, you could just use a current account

 

[ringer]

I second that about the current account. I looked into getting a business account - they all offer them free for the first 18 months - but then thought to myself 'why do I need a business account?' All I want to do is to keep separate the sparky money from the family money, so I opened a current account.

 

[johnr]

Hi m8, i opened a business account recently with hsbc, its free for 18 months and they didnt even mention a business plan, as others have rightly said you only need to produce a plan if you are trying to get money out of them.
good luck with it all...

 

[Echo]

Yeah i cancelled it in the end, RBS gives you 2 years free business banking so going to give them a whirl.

 

[m4tty]

Ive just opened up a business account through Natwest and they didnt ask for a business plan. I was also going to use a personal account for the business but The Princes Trust who ive just done a business start up course with said that if the bank found out you were using a personal account for business it was fraud. Dont 100% agree with this but think the bank can be moody about it. Cheers

 

[All Sorts]

an accountant friend of mine also pointed out to me that you dont exactly NEED a business account anyway

Rob, your accountant friend might be better as your friend and not your accountant!

In my humble opinion, it makes little sense to try and run a 'real' business from a non-business account, why not just keep your money in an old shoebox under your bed?!!!

If you're trying out a new business venture, then yes, by all means muddle through for say 3 months but if you take your business seriously then with free online business banking available then it's just plain lazy not to use it.

I can think of a couple of very worthwhile things a business account gives you;

1. Credibility - a chq with a company name on, to pay a matching invoice (for example). A bit like a hotmail or yahoo address being compared to a .co.uk one

More importantly credibility with your bank, and should you wish to expand in future years, you'll have a clear track record to go alongside your business plan at that time. Even if a personal account that you know is actually your 'business' account, happens to be flourishing, your bank will never recognise it as such (they can't as you've not been tranparent in your business dealings).

2. Accountability - every single transaction is accountable and so it will (or should) have a corresponding entry in your accounts and be identifiable by auditors. HMRC or whoever. With the best will in the world, the fact that you can effectively do whatever you like with your 'own' accounts means your business account simply needs to live somewhere else!

Hope I've not got anyone's back up, it's just common-sense that's all..

 

[acat]

I would not worry about upsetting people you are entitled to your opinion the same as everyone else and we are all guilty of being unable to see the wood for the trees at times and posts like yours will help everyone in one way or another.

Thanks for the feedback and clarity as to the benefits of a business acct.

Keep on posting


Chris