Finding the right bank account for your small business is serious business. An account is more than just a place to store your money; the right one will have the tools to help your business grow. Here are 5 essential features to look for in a small business bank account.
1. Software integration
Accounting software integration can save you time and money, especially with Making Tax Digital (MTD) now live. Stats from HMRC show that, by April 2027, around 36% of sole traders will need to be MTD compliant.
There are 2 routes to go down when thinking about accounting software integration:
Embedded software. Accounts like HSBC Small Business Banking Account embed accounting tools**. You can manage your business finances in one place, unlock instant cash flow insights, and stay compliant with HMRC’s Making Tax Digital for Income tax rules.
Software integrations. This is where you have accounting software from the likes of Sage or QuickBooks, and you connect this to your bank account. Typically, this type of software will analyse your bank feed alongside receipt capture for tax reporting.
2. Dedicated support
In the fast-paced world of startups, “self-service” only goes so far. When challenges arise or opportunities present themselves, having access to professional insight is invaluable. Support can be delivered through the following:
Access to business specialists. When something goes wrong, you want to talk to someone for advice. Accounts like the HSBC Small Business Banking Account give you access to business specialists virtually or in-person – whichever suits your circumstances.
Strategic growth support. Beyond daily transactions, the right banking partner invests in your future. This includes invitations to networking events, bite-sized training courses and mentoring. Find something which will not only help your business run, but also grow, such as the HSBC Small Business Growth Programme.
3. Transparent transactions
Keeping costs low is important when you’re running a small business, so you need to know what you’re spending and where. A lot of banks don’t charge a monthly fee, but can charge you for everyday transactions.
Type of business. Keep in mind the type of business that you run. For example, if you do a lot of business overseas, avoid an account with high fees for international payments.
Digital services. Often, you can avoid costly fees by going digital. For example, even traditional banks like HSBC UK have supportive pricing with no monthly account fee for its HSBC Small Business Banking Account and free UK digital banking* – meaning day to day standard electronic transfers made through Business Internet Banking and the HSBC UK Business Banking app are free, but other charges may apply.
Cost-benefit analysis. When fees are transparent, it’s easier to see if a monthly fee saves you more in transaction fees than a “free” plan that charges per transfer.
4. Multi-user access
When you’re a small business, you want to avoid bottlenecks to keep cash flowing and clear the pathway for growth. A bank account that allows multiple users will do just that. Examples include the HSBC Small Business Banking Account, which allows multiple people to manage the account, or digital-only options like Monzo or Tide (although multi-user access is only available on their paid plans).
Faster payments. If you’re the only one who can authorise payments, your business can grind to a halt. Adding multiple users to your account removes this potential bottleneck.
Audit trail. When multiple people have their own login, the bank records exactly who moved which funds. This is much safer than sharing a single password.
Expense management. You can grow more efficiently when employees have their own cards. You’ll also benefit from tracking what your team is spending, and avoid a pile of messy expense claims at the end of the month.
5. App-based access
To effectively run a business, you need to be able to manage your money on the go. The right mobile banking app features can make a big difference when you’re a small business owner.
Mobile “branch” capabilities. With the right business banking app, you won’t even need to go into a branch – you’ll be able to do most actions from your smartphone, like mobile cheque deposits.
App-based communication. A good business banking app will have live chat capabilities and, in some cases, a virtual assistant that you can access when needed.
Security. If a card gets lost or there is suspicious activity on the account, your banking app will help you to freeze your card and report it stolen. You’ll also be able to report the suspicious activity there and then.
Frequently asked questions
Why do small businesses need a separate bank account?
Separating your finances is about more than just organisation – it’s about protection. A business bank account simplifies your accounting and tax season while ensuring your personal wealth remains shielded from business lawsuits and financial risks.
How can I switch business bank accounts without disruption?
Switching your business bank account is simpler than you think. With the Current Account Switch Service, your balance, automated payments, and incoming transfers are moved over for you.
* It’s worth checking how banks define terms like “free UK digital banking”. HSBC UK says “Free UK digital banking means day to day standard electronic transfers made through Business Internet Banking and the HSBC UK Business Banking app are free. Other charges apply e.g. cheques and CHAPS. See Business Price List for details. Subject to application, eligibility, credit check and T&C.
**It’s also worth noting that to be eligible for My Business Finances your business needs to be a non-VAT registered sole trader with an HSBC UK Small Business Banking Account or Business Banking account only. Charities and NBFIs are not eligible”
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Kate Steere is an editor and money expert at Finder, specialising in banking, savings and fintech. She has previously written for The Motley Fool UK and Fitch Solutions, where she covered a wide range of personal finance topics and kept a close eye on market trends. Kate has a Bachelor of Arts in Modern History from the University of East Anglia. When not working, she can usually be found curled up with a good book or heading out for a run.
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