Small business banking - cash deposits.

Ojilli

Hi

Anyone any idea which is the best business bank account if your business will be banking lots of cash - the best one I can find is the Co-operative where you can also use local post office branches. £12,000 cash deposited free each month but with a £25 monthly fee from the outset.

Can anyone help who may have done this same legwork recently??

Many thanks

jm2926

If you join the FSB coop banking is free (and it has other benefits)

Savvy_Sue

Other banks are able to use the PO for paying cash in but you need to check the one you're interested in does, as you may need to make special arrangements.

mikaj

Ojilli wrote: »

Hi

Anyone any idea which is the best business bank account if your business will be banking lots of cash - the best one I can find is the Co-operative where you can also use local post office branches. £12,000 cash deposited free each month but with a £25 monthly fee from the outset.

Can anyone help who may have done this same legwork recently??

Many thanks

having exact same problem just looking for an online account to deposit about 4,000 cash per month from the post office, coop seems best choice at the moment but still not happy to pay for depositing cash, that the post office use to pay its customers,

longtimelurkersam

Why not just use a separate personal account for all cash in and then Online transfer into the business account? It would be an easy set of records to keep and there is nothing to stop you doing this if you keep it straightforward!

bni

longtimelurkersam wrote: »

Why not just use a separate personal account for all cash in and then Online transfer into the business account? It would be an easy set of records to keep and there is nothing to stop you doing this if you keep it straightforward!

Because the bank will quickly cotton on to it not being used as a personal account with regular large cash deposits and either close it or convert into a business account.

Using a personal account for business purposes is against the accounts Ts&Cs as of course the bank wants to stop people from doing exactly that.

paddyrg

Can you minimise it by paying your salary and all suppliers in cash, so you only bank profit effectively?

Pennywise

paddyrg wrote: »

Can you minimise it by paying your salary and all suppliers in cash, so you only bank profit effectively?

Lots of businesses do this, but if you do, please keep "bomb proof" book-keeping records showing how your takings (as per till rolls) balances to your payments out to the penny. It's very high risk and could land you with a tax bill if your cash records are found lacking if the tax man inspects you. Also, of course, make sure that you securely keep all the supporting paperwork and don't lose receipts etc. At least when monies are banked and payments are made out of a bank account, there's an audit trail of the bank statements if you lose some paperwork or if your papers are destroyed. Cash transactions are rich pickings for tax inspectors.