Considering Bank Accounts with Accounting Software for a New Business
My wife is launching a business this year, and we’re exploring bank account options, particularly free ones to start. For those who have been through this before, is it better to prioritize the bank account itself, or is access to free Accounting Software a significant factor?
We’re currently looking at three options:
- Starling Bank for Sole Traders
- Mettle
- NatWest
We’re considering Mettle and NatWest because she is already a NatWest customer, which provides “free” access to FreeAgent. Plus, NatWest offers fee-free banking for the first two years for startups, making it an appealing choice. However, we’re not sure yet whether the ability to access business credit (which Mettle doesn’t offer) will be essential.
On the other hand, while Starling doesn’t come with any complimentary software, it does offer benefits like international payments and accounts in USD/EUR, which might be useful as she plans to expand her sales as a glass artist.
I realize this isn’t a comprehensive question, as we’re still in the early planning stages. Any insights on whether “free” really is free, or if investing in other software would be worthwhile if FreeAgent isn’t the best option? Thank you!
2 Comments
It’s great that you’re considering your options as your wife starts her business! Here are some pointers to help you weigh the pros and cons of each bank account option, balancing the benefits of bundled software and banking features:
Focus on Needs: First, identify what your wife prioritizes for her business. If she expects to work primarily in the UK, any of these accounts could suffice. However, if she’s planning to broaden her sales internationally, Starling’s multi-currency options may be more appealing.
Evaluate the Software: FreeAgent is a solid accounting software, especially for small businesses and sole traders. If your wife is comfortable with it and it meets her business needs, then going with Natwest or Mettle (which offers it for free) could be a cost-effective solution. However, consider what features she may need as her business grows, and whether those are adequately addressed by FreeAgent.
Consider the Costs: While both Mettle and Natwest offer ‘free’ software, it’s important to check for any hidden fees associated with those accounts or software. Similarly, review if Starling’s lack of free software is offset by any lower costs or other benefits.
Access to Credit: If access to business credit may be essential in the near future, Natwest could be a better choice given its business credit services compared to Mettle. This is something to weigh carefully, as having access to credit can be critical in scaling a business.
Ease of Management: Having all financial tools in one place can simplify management and tracking. If your wife prefers a streamlined approach, a bundled account could save time and stress when managing finances.
Customer Service and User Experience: Check reviews for customer service quality of each bank, as well as the user interface of the banking app and software. A smooth experience can make a big difference.
Future-Proofing: Think about growth. If she anticipates significant international sales or the need for advanced accounting features, it might be worth considering if any account has options for upgrading or better suited features down the line.
In summary, it’s essential to align the bank account and software choice with your wife’s specific business needs and future plans. Free isn’t always free if additional costs pop up, so thorough research will be key. Good luck to both of you on this new venture!
It’s great to see you and your wife actively exploring bank account options for her new business venture! Your question about prioritizing banking features versus access to accounting software is an important one, especially in the early stages of a business.
When evaluating options like Mettle and NatWest, it’s essential to consider both immediate and long-term needs. While the “free” offerings from NatWest, including FreeAgent, might seem appealing upfront, it’s wise to analyze the full cost down the line—such as transaction fees once the initial period is over or any limitations on transactions or features within FreeAgent that may hinder business growth.
Mettle may lack certain features like business credit, but its simplicity and user-friendly mobile app can benefit a sole trader, especially for managing day-to-day finances on the go. Additionally, consider which accounting software integrates best with your accounting practices and future needs; sometimes, opting for standalone software might save you from potential limitations of bundled solutions.
Have you considered the scalability of the business? As her business expands, she may need more advanced accounting features that some free software can’t provide. Platforms like Xero and QuickBooks offer comprehensive solutions that scale well with growing businesses, albeit with associated costs.
Lastly, it’s also worth reaching out to other entrepreneurs or small business forums to collect shared experiences regarding the bank accounts you’re considering. Their insights on customer service and overall satisfaction can be invaluable in making an informed decision. Good luck with the business, and do keep us updated on your findings