Corporate accounts are also known as business accounts and are necessary for any business regardless of type or size to have. Professional organisations use business accounts to invest and save and also to cover day-to-day corporate banking needs.

An IBAN account differs from a traditional business bank account in the sense that it uses an agreed system of identification numbers to identify specific banks and bank branches. The aim is to facilitate the automated processing of cross-border transactions.

Corporate IBAN accounts can offer business owners many different benefits that are offered through a variety of banking services. Even if you’re a small business or regularly receiving payments from customers you should open a corporate account to protect your spending and payments.

There are many benefits of opening a corporate account for your business. All businesses are considered to be legally separate from their owners and shareholders. This means that it is wise to consider having a separate business account from which you can complete all of your business transactions. There are many reasons for this:

Protection from financial liability and business failings.

If you have a corporate account and your business fails or their are any cases of fraud against the business then you are protected against being held personally liable for any profits lost. This also means you won’t be held responsible for any debt and your personal assets will not be taken away if your business goes into debt.

It helps your business to build a professional profile.

Not only are you likely to gain better deals from suppliers and vendors when contracting with a corporate account as it looks more trustworthy than a personal account would. It also looks more professional and helps to make your business look more reputable when making financial transfers and accepting payments from customers.

It makes tax returns much easier.

Having a separate corporate account is useful and much more convenient when completing tax returns as you can clearly see your income and expenses as well as any other deductions on a separate account statement. Having a business bank account helps you to avoid mixing up your personal and business spending and finances and helps you to provide an accurate tax return.

Personal bank accounts have their own restrictions.

You won’t be able to benefit from many of the rewards  and offers that banks offer businesses when opening a corporate account if you solely use your personal bank account. Banks are also more lenient when granting loans to corporate bank accounts especially if they have a good credit rating.

It makes selling your business much easier.

If you ever want to sell your business having a corporate account makes it easier for both parties to track the performance of your business and provide clear and accurate information to the buyer.

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There are many reasons why you should aim to keep your personal and business finances separate. Keeping your business dealings separate from your personal transactions helps to add a layer of protection to your business and your personal funds.

It helps you to build a good credit record.

Having a corporate account helps you to begin building your companies credit score. Without a business account you rely on your personal credit score when trying to secure a loan or credit card and this can cause some complications. You can slowly build a reputable credit history through repeated use of a corporate account.

Organise and manage your business in a better way.

With a corporate account spending and budgeting becomes more convenient as you won’t have two streams of income coming through a singular account. All of your bank statements will solely include your business finances which helps to add clarity when tracking your income and expenses. It also helps to show the true financial position of your business if you’re ever pitching to investors.

Corporate accounts help partnerships run smoothly.

If you ever want to enter into a partnership or are considering expanding your business then a corporate account will be needed to complete this transaction as the corporate account will mean that potential business partners won’t have access to your personal finances and spending. If looking to sell your business then potential buyers may also wish to investigate the business from a financial standpoint and having a corporate account will mean that there is a barrier between your business and personal finances.

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There are a few pieces of information that banks and financial institutions will usually ask for or need to know when looking to open a corporate account for your business. You will usually be asked for:

• The legal name of the business
• What type of business you’re running (i.e. the industry)
• Legal proof that the business is legitimate and owned by you
• A business address
• Your contact details (usually including your personal address, email and phone number)
• Your driver’s licence number
• Photographic identification