Why your company needs its own bank account
Using a personal bank account for your company can create big problems
A separate business bank account is not a strict legal requirement, but because the company is a separate legal entity, it is effectively essential from day one.
The problems a shared account causes
Every personal transaction in a shared account lands in the company's records. Each one has to be identified and posted to your director's loan account, which slows the bookkeeping, generates queries, and can build an overdrawn loan balance without you noticing.
Getting set up
Open a business bank account in the company's full registered name, connect the bank feed to Xero, and run all company income and costs through it from the first transaction. Most app-based business accounts open within a day or two.
💡 Good to know: If you traded through a personal account before the business account opened, tell us. Once you have identified the company transactions, we will help you record them properly.
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