Most digital nomads, serial expatriates, and others in the location-independent crowd can live and work remotely since they are in charge of their own businesses.
When setting up your business as a limited company, you are required to open a separate business bank account. Whether your company is small or large, experts say it might be time to consider setting up a multi-currency business account. Banking institutions and other financial entities offer these services today, offering to avoid common fees, exchange rate issues, and payment processing fees.
Setting up a dedicated bank account for your business might seem unnecessary in the early stages, but it will eliminate several hassles that make keeping accurate accounts difficult and time-consuming. You will find that, in addition to a variety of other tools and services, opening a business bank account is convenient for keeping track of:
- Overall available balances
- Money owed to the business
- Up-to-date employee payroll information
- Money your business owes to any creditors
How Does A Multi-Currency Account Work?
As with a standard bank account, a multi-currency account works essentially the same. In general, the capabilities of your account will differ depending on where you open it, but you can expect to be able to do the following:
- Withdrawing money
- Sending and receiving payments
- Access to your funds for cheques or electronic transfers
- Earning interest on your account total (depending on the institution)
On a global currency account, you may incur similar types of fees as on a standard bank account. Fees may apply to withdrawing funds, opening accounts, transferring funds, and more. The amount and frequency of these fees will vary, but you will be able to find out before opening your account if you ask the agent.
How Do You Open A Multi-Currency Business Bank Account?
If you fit the criteria outlined by your provider, opening a multi-currency business account at a bank is relatively straightforward. You may need to have the following details in hand:
- Business address
- Contact information, including a current telephone number
- Companies House registration number (if you are a limited company or partnership)
- Estimated annual turnover
It is also important to note that you may also be required to provide evidence of your personal financial circumstances to verify that you have a clean banking and credit history.
Once you have provided all the necessary details, activate your account. Choose which currencies you want to activate first and add money to your different balances. This can either be achieved by providing your international account details to clients, or by adding money into your different currency balances via bank transfers, credit card payments, etc.
It’s that easy: you can save money on international money transfers and manage your currencies right away.