Business banking essentials for founders in year one
Five banking decisions that quietly determine whether your first year is calm or chaotic. Most founders only realise they got them wrong at month nine.
You'll worry about product-market fit, hiring, and your tax bill. Banking should not be on the list of things keeping you up. Here's how to make sure it isn't.
1. Separate accounts from day one
Mixing personal and business money is the most common, most expensive mistake we see. Even sole traders should split — it makes Self Assessment painless.
2. Pick a card processor before you need one
If you'll accept payments, lock in a processor with next-day settlement before launch. Waiting 7 days for funds tanks early-stage cash flow.
3. Set up bookkeeping integrations once
Connect Xero or QuickBooks to your business current account on opening day. Backfilling six months of transactions later costs an accountant £400 — automating up front costs you nothing.
4. Build a lending relationship early
Apply for a small overdraft facility while you don't need it. When you do, the relationship is already in place.
5. Calendar a banking review
Twice a year, look at fees, FX charges, and rates. Your needs at month 18 are not your needs at month 1.