We live in an increasingly digital world, embracing it for a variety of business uses. You don’t have a brick and mortar store so why rely on a brick and mortar bank? Join us as we examine which is the best online bank account for e-commerce entrepreneurs in 2020.
Whether you are new to your role as an e-commerce entrepreneur or already have a thriving empire, it’s never too late to look at online bank accounts to help you manage your business’ finances.
Benefits of an online bank account for e-commerce purposes
Online bank accounts are designed to incur fewer overhead costs, and they pass those savings onto you. This results in lower service and maintenance fees, higher interest rates and the good feelings that come from a smaller environmental footprint. Additionally, transactions clear faster than they do in traditional banks.
There are also some hidden and less tangible advantages, such as ease of saving (cash is less easily obtained), showing investors your business is interest in future-proof solutions and ease of integration with your other finance apps. We have included links on how to integrate all of these options with Xero, our recommended accounting software for e-commerce businesses.
Get A Free Quote
Breakout E-commerce accountants and Xero specialists to supercharge your UK online business growth.
If you’re wondering if you need a dedicated business bank account, you can read our opinion in our financial start-up guide for e-commerce businesses.
Monzo
Monzo launched their business accounts in 2019 and they have been well-received by business owners. They allow free bank transfers and have a facility for saving pots to help you budget for upcoming expenses. Upgrade to the Pro account (£5 a month) to access these plus invoicing facilities and integrated accounted and 6 months of Xero free.
Starling
Starling is a popular online bank account for e-commerce entrepreneurs, due to its ease of integration with accounting software, same-day set up and its commitment to no monthly charges. There is also no charge for electronic payments, domestic transfers, or ATM withdrawals.
There is currently no overdraft facility, so going overdrawn will incur stiff penalties.
To integrate Starling with Xero, follow these steps.
Tide
Tide again has no monthly fee until you expand and allows easy access to funds. A Tide account allows a line of potential credit to business loans of up to £150,000. They are proud of their integration with Xero and allow automatic tagging of all income and expenditure, saving you even more bookkeeping time.
Tide currently does not have a banking license and is not covered by the FSCS. You will be charged 20p for a transfer and £1 for cash withdrawals.
Another online bank that has grown exponentially in popularity in recent year is Revolut. Businesses are able to set up an account for free, but this will have limited access to the full range of services Revolut offer. Their mobile business account are accessible online and on desktop 24/7, and users are able to trade in 30 currencies. Revolut integrates seamlessly with accounting software’s, such as Xero, and their monthly account fees range from £7 to £100, depending on usage.
Online set up is quick and easy, and you will have full virtual access to loans, overdrafts and payroll solutions, as well as the ability to manage employee spending through company cards with real-time spend notifications. With a free business account, ATM withdraws incur a 2% fee, and you will be able to process 5 bank transfers for free, with each following transfer costing £0.20.
Mettle
Our final online bank account for e-commerce entrepreneurs is Mettle, a brand that started life under the NatWest umbrella. It has no monthly fees and has the added benefits of allowing you to create and send invoices directly from the app.
There is currently no overdraft facility and standing orders are not available, although direct debits are.
To connect Mettle with Xero, follow these steps.
Next Steps
If you would like guidance on choosing an online bank account for your e-commerce business, integrating it with Xero or anything else relating to the financial wellbeing of your brand, get in touch with our team of e-commerce accounting experts today.
Why choose Unicorn Accounting?
At Unicorn Accounting we are e-commerce accountants who help make your online business a growing success. We offer e-commerce accounting advice, financial management, bookkeeping, cash flow statement, and tax filing services to support and scale your business.
Our team of accountants and Xero-certified advisors have experience working with both small start-ups and family-run online stores to large-scale, international retail and e-commerce brands.
If you’ve got an online store, we have the best solution for you. Providing you with a financial arm to your business through our sector experience, and skills with innovative technologies. To see how we can help you maximise the scalability of your e-commerce brand all year round, get in touch with Unicorn Accounting today. Or click here to get a free quote.
Get A Free Quote
Breakout E-commerce accountants and Xero specialists to supercharge your UK online business growth.
