The rise of business banking apps like Starling, Tide and Coconut are creating fantastic opportunities for us small business owners. Not only are they cheaper than the traditional high-street banks (any are even free), but they are packed full of features that save us time, improve visibility and help us streamline our operations.
With business being quiet for many of us, it is the perfect time to focus on cost control. Reducing costs is far easier than increasing sales (especially now that we are in the middle of a pandemic). Switching your bank account may be one of the easiest wins.
I spend at least an hour every month updating my cash flow forecast and looking for ways in which I can minimise costs. Up until last month we were spending over £40 every month on bank charges. What were we getting for that? Not a lot!
Using sites like Which, MoneySupermarket and KnowYourMoney, I decided to look at what these new banking apps had to offer. There are heaps of companies now offering attractive services, so make sure you do your research and choose one that matches your business needs. For example; Do you need an overdraft facility? Do you need it to integrate with your invoicing or accounting applications? Do you need to make regular international payments? Do you regularly deposit cash? I decided to switch to Starling Bank due to it's free banking offer and integration with Xero. It took minutes to set up my new bank account and I'm now saving over £300 per year in banking fees. I've also managed to streamline my accounting and invoicing process, saving me time and inproving the service I offer to my clients.
The switching process was easy using the Current Account Switch Service (CASS). To check if your bank participates, just go to the CASS website.
So, why not spend an hour or two this week researching how your business can benefit by switching your banking service.