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Business is changing fast.

• Cross-border payments are normal;
• Remote partners, clients and your employees  are everywhere;
• And founders are managing revenue in 3–5 currencies at once.

But one thing hasn’t changed: If you structure your banking properly, you gain control, flexibility, and financial clarity. Not by opening random accounts. But by choosing the right types,  for the right purpose. 

Numerous options from banks

The right business bank accounts help you:

Separate operating cash from savings

Manage international payments efficiently

• Reduce FX losses;
• Accept global customer payments;
• Protect funds for tax and compliance;
• Build credibility with partners and investors.

Whether you're a startup, SME, e-commerce seller, or international group,  these 7 account types form the foundation of smart financial management. Let’s break them down.

First, do you need to open all the accounts in this article?

No, you do not need to open all types of bank accounts for your busisness. Most businesses can operate perfectly well with just three core accounts. 

We have not seen too many founders waste time opening 6 different business accounts in their first month because some blog post told them they "needed" everything. That's overkill, especially when you're just getting started.

Here's what you actually need right now:

• Business checking account: This handles your daily operations. Customer payments come in, vendor invoices go out, payroll gets processed. Every business needs this from day one;
• Business saving account:  This is where you park your emergency fund (3-6 months of operating expenses) and any surplus cash you won't touch for 30+ days to a year. It earns interest while staying liquid;
• Multi-Currency Account (only if you operate internationally): If you're invoicing foreign clients, paying overseas suppliers, or running operations across borders, this saves you thousands in exchange rate markups and wire fees. If you're purely domestic? Skip it.

That's it. Three accounts. You can run a $1M+ business on this foundation alone.

As your business scales, financial optimization becomes a competitive advantage. What costs you $500 at $100K in revenue costs you $50,000 at $10M in revenue. Small inefficiencies compound. This is when you start diversifying your banking strategy:

• Money Market Account;
• Certificate of Deposit (CD);
• Merchant Account.

At the enterprise level, every basis point matters. A company processing $10M annually in foreign transactions might save $100K per year just by optimizing their multi-currency strategy.

These details seem minor when you're doing $100K in revenue. They become material when you're doing $1 M and more.

Business checking account (Business current account)

Best for everyday use and unexpected business spendings.

Example of a business current account from CMIB

A business checking account has been the backbone of company finances for decades. Daily deposits, bill payments, payroll processing, vendor transfers, it handles almost everything you need to run your financial operations at scale.

What makes it different from a personal account (link bài personal account for business) isn't just the name on the card. You get higher transaction limits, advanced payment integrations, and tools built specifically for business workflows.

Depending on bank policy, business checking accounts may pay interest (or pay very little compared to savings accounts, and have other useful purposes (Multi-purpose account). But that's not the point. This account exists for velocity, not growth.

Example of a business integrated account (Multi-purpose account) from HSBC

Handle every transaction type in one place

A business checking account is your go-to for managing cash flow. It connects to every payment method your business touches throughout the day.

You can deposit funds through multiple channels:

• Electronic transfers and ACH payments;
• Mobile check deposits (snap a photo, done);
• Wire transfers for larger amounts;
• Branch or ATM deposits when you need them.

And moving money out is just as flexible. Write checks, send wires, swipe your debit card, or schedule automated payments through online banking. Most accounts also integrate directly with QuickBooks, Xero, or whatever accounting software you're already using.

Let's say you're running an e-commerce business, selling handmade products from South East Asia to the U.S market. You might receive customer payments via Stripe, pay your supplier through ACH, cover ads with your debit card, and send payroll via direct deposit,  all from the same checking account.

Watch your transaction

Here's something that catches newer business owners off guard: many checking accounts cap your monthly transactions or have a ‘fall-below-deposit' policy. Go over that limit, and you'll see fees start piling up.

For example, a standard account might include 200 transactions per month. After that, you might pay $0.50 per transaction. If you're processing 300 transactions monthly, that's an extra $50 in fees you weren't planning for. 

Another example is the required deposit for each month is 5000 SGD, but you only have 4000 SGD in your account. In this case, you have to pay "fall-below' fee to the bank

The workaround? Some online-first business banks offer unlimited transactions but restrict cash deposits since they don't have physical branches. Know your business model before you choose.

When do you actually need a business current account?

Every business should open a checking account the moment they open a company/business: Startup, LLC, corporations, private limitedd, partnership, etc. 

If you're operating as a business entity, you need business banking.

Business saving accounts

Best for setting aside surplus cash and building an emergency fund.

A business savings account has been the default parking spot for excess capital for decades. Emergency reserves, tax payments, seasonal cash cushions; it gives your money a safe place to sit while earning at least some return.

The interest rates aren't exciting. Most business savings accounts pay somewhere between 0.01% and 5% APY (Annual Percentage Yield) depending on the bank. But that's still better than letting $50,000 sit in checking earning nothing.

What you gain in interest, you lose in flexibility. Savings accounts restrict how often you can move money around — federally capped at six withdrawals per month in the US. Most don't let you write checks. And excessive cash deposits might trigger limits or fees depending on your bank.

But if you're holding capital you won't need for 30+ days, a savings account beats checking every time.

Example of a business saving account from Bank of China

Earn interest while you sleep

A business savings account is my go-to for money that needs to stay liquid but doesn't need to move daily.

Let's say you run a landscaping business. You make 70% of your annual revenue between April and September. By July, you've built up $80,000 in cash, but you know you'll need it to cover payroll and expenses through the winter.

If you leave that $80,000 in checking at 0% APY, you earn nothing. Move it to a high-yield business savings account at 4.5% APY, and you'll earn roughly $1,800 over six months — just for parking it somewhere smarter.

Most accounts also let you create sub-accounts for specific goals. You might have one for your emergency fund, another for quarterly tax payments, and a third for equipment upgrades. Same account, organized by purpose.

When should you open a saving account?

Our banking experts recommend opening a business savings account when you hit any of these scenarios:

• You have seasonal cash flow swings: Retail businesses that spike during Q4, tax firms that earn heavily in Q1-Q2, or construction companies with summer peaks — if your revenue isn't steady year-round, you need somewhere to store the surplus months to fund the lean ones.
• You're building an emergency fund: We suggest 1-2 years of operating expenses in reserves. A savings account keeps that cushion separate from daily operations while still earning interest.
• You're setting aside money for known future expenses: Quarterly estimated taxes, annual insurance premiums, equipment replacement funds — if you know cash will go out in 60-120 days, park it in savings until then.
• You want higher returns without market risk: Unlike investing excess cash in stocks or bonds, savings accounts are FDIC-insured up to $250,000. You won't lose principal, even if the market crashes.

Multi currency account

Best if you need to pay overseas suppliers and receive customer funds in different currencies

Examples of multi currency account from our in-depth article

A multi-currency account help you hold Euros, British pounds, Japanese yen, Chinese yuan and US dollars in one place,  no need to open separate foreign bank accounts in each country you operate in.

Unlock global payment the right way without extra fee

What makes these accounts powerful isn't just convenience. It's control. You can receive payment from a UK client in pounds, hold those pounds until the exchange rate improves, then convert to dollars when it makes financial sense.

 With a traditional business checking account, you'd be forced to convert immediately at whatever rate your bank offers — which is typically 3% - 5% worse than mid-market rates.

Let's say you run an e-commerce business selling to customers across Europe, the UK, and Australia. Instead of converting every euro payment to dollars the moment it arrives (and losing 4% to exchange fees each time), you hold euros in your multi-currency account and only convert when you actually need dollars — or better yet, use those euros directly to pay European suppliers.

On $500,000 in annual foreign revenue, avoiding unnecessary conversions can save you $15,000 - $20,000 per year in hidden exchange rate markups alone.

When a multi-currency account is essential?

You need a multi-currency account if any of these scenarios apply:

Business money market account

Best if you want the benefits of both a savings and checking account , and can meet the higher balance requirement.

A business money market account has been the middle ground between savings and checking for years.

 Higher interest rates than savings, more access than a typical high-yield account — it's built for businesses that want their cash to work harder without completely locking it away.

Example of a money market account form Armed Forces Bank

Earn more without sacrificing liquidity

MMAs typically pay 0.5% - 1.5% more than standard business savings accounts. And most use tiered rate structures, meaning the more you deposit, the higher your APY climbs. For example,  Park $100,000 instead of $10,000, and you might jump from 3.5% to 5.0% APY — an extra $1,500 per year just for having more on deposit.

What makes MMAs different from savings isn't just the rate. It's the access. You get check-writing privileges and debit card transactions, similar to a checking account. But you're still capped at six withdrawals per month under federal rules, so it's not meant for daily operations.

The tradeoff? Higher minimum balances. While a business savings account might require $100 to open, MMAs often start at $2,500 - $10,000. Some banks won't even open one unless you're depositing $25,000+.

Don’t confuse this with money market funds

Here's a critical distinction: a Money Market Account (MMA) is not the same as a Money Market Fund.

If someone pitches you a "money market" product, clarify which type they mean. The names sound identical, but the risk profiles are completely different.

When do you really need a MMA account?

Our banking experts recommend a business money market account when you fit these criteria:

• Your savings account rate feels too low: If you're earning 2.5% in savings but see MMAs offering 4.5% - 5.0%, and you have at least $10,000+ to move, the upgrade pays for itself immediately.
• You have a large cash reserve you might need to tap: Emergency funds, project budgets, acquisition war chests — if the balance is high enough to hit upper-tier rates and you want check-writing access just in case, MMAs are ideal.
• You want better returns without market exposure: Unlike stocks, bonds, or money market funds, MMAs are FDIC-insured. You get higher yields than savings with zero principal risk.
• You can meet the minimum balance requirements comfortably: If maintaining $10,000 - $25,000 minimum strains your cash flow, stick with a regular savings account. Dipping below the minimum often triggers monthly fees that eat your interest earnings.

Business certificates of deposit

Best for parking surplus cash you won’t need for a set period of time.

A business CD has been the go-to account for guaranteed returns for decades. Higher rates than savings or money market accounts, zero market risk, fixed returns you can plan around — it's built for cash you absolutely won't touch for months or years.

Example of a money market account form Bank of America

The tradeoff is access. Once you deposit funds into a CD, they're locked until the maturity date. Try to pull money out early, and you'll face penalties that can wipe out months of interest earnings. Some banks charge three months' interest for early withdrawal on a 6-month CD, or up to a year's worth of interest on a 5-year term.

But if you know you won't need the cash? CDs consistently pay 1% - 2% more than high-yield savings accounts. On a $100,000 deposit, that's an extra $1,000 - $2,000 per year just for committing to a timeline.

The interest rate stays fixed for the entire term,  which cuts both ways. If rates drop after you open your CD, you're protected. If rates spike, you're stuck earning less than new depositors.

The early withdrawal penalty you need to understand

Here's what catches business owners: CD penalties aren't just fees. They eat directly into your interest earnings — and sometimes your principal.

Here is an example our expert want to use to illustrate our point:

A typical penalty structure looks like this:

• 3-month CD: forfeit 90 days of interest
• 6-month CD: forfeit 180 days of interest
• 12-month CD: forfeit 6 months of interest
• 5-year CD: forfeit 12 months of interest

So if you open a 12-month CD earning 5% APY on $50,000, you'd earn $2,500 at maturity. But withdraw after just 6 months, and you'll forfeit half that interest ($1,250) as a penalty. Your actual return drops to 2.5% APY — lower than if you'd just used a savings account.

Even worse: if you withdraw very early (say, 2 months into a 12-month CD), you might not have earned enough interest yet to cover the 6-month penalty. In that case, the bank takes the penalty from your principal. You get back less than you deposited.

Bottom line: only open a CD if you're absolutely certain you won't need the money before maturity.

When do a certicate of deposit make sense in your case?

I recommend business CDs when you hit these specific scenarios:

• You have a known future expense with a fixed date: If you're saving for a $75,000 equipment purchase in 18 months, a CD maturing right before that date guarantees your rate and keeps you from touching the funds early;
• Current rates are attractive and you expect them to drop: If CDs are paying 5% today but economists predict rate cuts over the next year, locking in that 5% for 12-24 months protects you from declining returns.
• You've maxed out your MMA tiers and still have excess cash: Once you hit the top tier in your money market account, additional deposits earn the same rate. Moving the surplus into CDs can often boost your blended return by another 0.5% - 1.0%.
• You struggle with the temptation to spend reserves: The lockup period forces discipline. If you know you'd be tempted to dip into an MMA for non-emergencies, a CD removes that option entirely.

Merchan bank account

Best for business that need to accept credit cards and electronic payments from customers

A merchant account has been the backbone of electronic payments for decades. Credit cards, debit cards, Apple Pay, Google Pay: None of it works without this specialized account sitting between your customers and your business bank account.

Your regular business checking account can't process card payments directly. It lacks the infrastructure, security protocols, and payment network connections required to handle electronic transactions. That's where merchant accounts come in.

Example of a money marrket account form M&T Bank

Let's say you run an e-commerce store selling outdoor gear. A customer in California orders a $500 tent using their Visa card. Here's what happens behind the scenes:

Here's how it actually works: 

1. A customer pays you $500 with a credit card. That money doesn't hit your checking account immediately. It may go through payment gateway like Stripe, Paypal, Authorize to capture the card details.
2. It lands in your merchant account first, where it sits for 1-3 business days (longer or shorter )while the payment processor verifies the transaction, checks for fraud, and settles funds with the card networks. 
3. Then it transfers to your checking accounts,  minus processing fees that typically range from 1.5% to 3.5% per transaction.

On that $500 sale, you might pay $12.50 in fees (at 2.5%). Do 200 transactions per month, and you're spending $2,500+ annually just to accept cards. But for most businesses, that's still cheaper than turning away the 80%+ of customers who prefer to pay online in the age of AI and digital transformation.

Compare at least 3 providers on total cost, not just headline rates

When a merchant account is non negitiable?

You need a merchant account if any of these apply:

• You sell online or via mobile app: E-commerce businesses can't survive on cash and checks. If you're selling through Shopify, WooCommerce, or a custom site, you need merchant services to process cards.
• You accept in-person card payments: Retail stores, restaurants, salons, gyms — if customers expect to swipe, tap, or insert their card, you need the infrastructure to handle it.
• You run a subscription or recurring billing model: SaaS companies, membership sites, subscription boxes — merchant accounts automate recurring charges so you're not manually invoicing every customer monthly.
• Your industry has high transaction volumes: If you're processing $100K+ monthly, the per-transaction savings from negotiating better merchant account rates (vs. using PayPal or Square) can save you $500 - $2,000/month.
• You want lower fees than all-in-one processors: PayPal and Square are easy to set up but charge 2.9% - 3.5% + $0.30 per transaction with no negotiation. A dedicated merchant account often gets you to 2.0% - 2.5% once you have volume.

Ready to open your busines bank account?

There are obviously countless other bank account options out there. But these are the ones our banking experts recommend trying first.

And if you need help and expert consulation, you can always count on us, we can help you:

If you need help choosing the right bank and account type for your business stage, our experts help founders open accounts with a 98% success rate, using proven KYC frameworks and 10+ years of banking experience.

• Recommend the right bank and the right bank account for your needs;
• Support you in opening a reliable, trusted digital bank account or traditional bank account;
• Prepare necessary documents for account opening;
• Schedule an appointment with a Singapore bank representative;
• Monitor and assist in opening corporate bank accounts (physical and digital).

FAQs about types of business bank account

• Country: The U.S
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If you hear anyone saying selling on Amazon is easy. They are dead wrong.

Selling on Amazon as a foreigner isn’t just about opening an account anymore. It’s about structuring your business the right way.

In 2026, Amazon sellers without a U.S. company are running into more barriers than ever. 

• Stricter KYC;
• Bank account verification;
• Tax and compliance checks that weren’t enforced a few years ago;
• Heavy investment upfront (from advertising, legal setup, to logistics) to keep your store running in the first year.

This is the email we received from one of the customers we supported 

And this shift is showing up in seller suspensions and slow verification. Our experts at Global Link Asia Consulting reviewed hundreds of Amazon account cases.

Some we supported with success. Others showed risks so high that we had to turn down during the KYC process. Those hard cases had one thing in common: No properly structured U.S. company behind the seller account.

This isn’t an isolated issue. We had to consult more and more foreign to sell to form  U.S. companies before launching on Amazon. And the reason goes deeper than compliance.

In 2026, selling on Amazon as a foreigner requires more than a product and a listing. 

In this guide, you’ll learn:

• Whether you really need a U.S. company to sell on Amazon;
• How foreigners can legally set up and operate a U.S. company.

First, let's begin by understanding why more and more sellers choose to sell on Amazon.

Why are more and more people selling on Amazon?

Selling on Amazon means selling directly to consumers through the world’s most powerful e-commerce marketplace. And that marketplace keeps getting bigger.

Market potential

In 2024, U.S. online retail sales surpassed US$1 trillion, and Amazon captured a dominant share of that growth.

Amazon growth over the years

But here’s the part many people miss: Amazon is no longer driven mainly by big brands. More than 60% of Amazon’s total sales now come from independent sellers, most of them small and medium-sized businesses.

That shift explains why entrepreneurs around the world are moving to Amazon. Amazon offers what most platforms can’t combine in one place:

• Massive demand;
• Built-in customer trust;
•  World-class logistics (Amazon has launched a new service called Amazon Global Logistics - AGL);
•  Scalable growth potential.

Instead of building traffic from scratch, sellers plug into an ecosystem with hundreds of millions of ready-to-buy customers.

And Amazon does the hard parts.

1. Storage;
2. Shipping;
3. Returns;
4. Customer service.

Programs like Fulfillment by Amazon (FBA) allow even solo founders to operate like large enterprises, without owning warehouses or hiring logistics teams.

Omnichannel opportunity in the U.S 

Amazon is a powerful marketplace. But the most successful sellers don’t rely on Amazon alone. They build systems that sell across multiple platforms, while keeping operations centralized.

That’s where omnichannel selling comes in. Amazon supports this approach with tools designed to extend sales, logistics, and marketing beyond its own marketplace.

In addition to being  Amazon sellers, sellers can expand into channels like Walmart Marketplace and TikTok Shop, turning Amazon into the operational backbone, not the only storefront.

Sellers are looking for opportunities to sell on Walmart

Should you sell as an individual or as a business on Amazon U.S?

This is the first reason most Amazon sellers fail, or struggle to survive beyond years 2–3. They choose to sell as an individual on Amazon. At the beginning, everything looks fine.

The account is approved. Sales come in. Nothing seems wrong. Until legal and tax issues appear.

And by the time they do, most sellers are already too deep to fix them easily.  Most sellers who do eventually pay the price, through legal exposure, tax complications, or forced restructuring.

On the one hand, selling personally may work in the short term, but it creates long-term risks that many founders don’t see until it’s too late. 

On the other hand, incorporating a company in the U.S is the foundation that allows an Amazon business to scale, stay compliant, and survive beyond the early years.

To see the difference clearly between selling as an individual and as a business, our experts create the comparison table below for you:

Selling Personally: Fast to start, risky to scale

Amazon allows you to register as an individual by selecting “None, I am an individual” and using your Social Security Number. This option is often chosen by first-time sellers because it feels simple. You may need to contact Amazon Global Selling for support. But it offers minimal protection.

There is no legal separation between you and the business. Any dispute, claim, or investigation points directly to you as an individual.

For sellers of physical products, especially private-label products, this becomes a serious problem as the business grows.

That’s why many sellers hit a wall around year 2 or 3, not because the product failed , but because the structure couldn’t support growth.

Selling as a  business: Our recommendation

For sellers who want to scale, and survive long term, a U.S. Limited Liability Company (LLC) or a US Corporation is the most practical structure, especially for non-U.S. residents.

If you need help with company structuring for maximum protection, tax optimization and efficient operations, our experts can offer you our unique advice, based on hundreds of clients we helped buil long-term business models.

Opening a company in the United States and selling on Amazon has 3 important advantages:

How to open a U.S company for Amazon selling (the right way)

Now that you know the drawbacks and the benefits of selling on Amazon with a U.S company. 

Our experts will show you in this section how you can incorporate a company the correct way in this section (An overview). You can set up a U.S. company on your own. But sellers who do usually learn the hard way.

• Miss one detail, and Amazon delays your approval.
• Choose the wrong structure, and legal risk shows up later.
• Use the wrong address, and your seller account gets rejected.

With expert guidance, those risks drop to the lowest possible level. And your time to market shortens significantly, meaning faster sales, higher ROI, and earlier scale.

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Bonus: 3 pratical tips to go faster with our Amazon Seller account

Most new Amazon sellers focus only on getting approved. Smart sellers focus on getting approved fast and surviving long enough to scale.

Here are four practical tips that separate sellers who stall from those who reach profitability faster. These tips are what we concluded after interviewing our most successful Amazon sellers who have built their empire from the ground-up, with our ongoing support as a partner.

Plan your finance for a heavy first year (This is non-negotiable)

The first year of selling on Amazon is cost-intensive. This is where many sellers underestimate the game, and run out of cash before optimization kicks in.

In Year 1, your main costs typically include:

• Product sourcing and procurement;
• Manufacturing or private-label production;
• Shipping and international logistics;
• Amazon FBA storage and fulfillment fees;
• Advertising (PPC is mandatory, not optional);
• Software tools and compliance costs.

During this phase, profits are often thin, or negative. And that’s normal.

The real return usually comes in Year 2, once:

• Listings are optimized;
• Reviews accumulate;
• Advertising becomes more efficient;
• Supply chains stabilize.

As optimization improves, costs go down while margins go up. Amazon is not a quick-win platform. It’s a scale-and-optimize business.

To start, you can use our table below to get the estimated cost to start building your store on Amazon.

Please note that fee ranges based on your currency and service fees of Amazon branch in your country. Some sellers may incur additional fees, such as long-term storage fees or optional program fees, including advertising costs and premium account services.

4 types of selling fees on Amazon (in USD)

Register for Amazon Brand Registry

Brand Registry does more than unlock features. It fundamentally changes how much control you have over your listings and brand presence.

Brand Registry is a growth lever, but only if the groundwork is done correctly

Leveraging Fulfillment by Amazon (FBA)

Fulfillment by Amazon (FBA) is the backbone of scalable Amazon operations.

With FBA, you send inventory to Amazon’s fulfillment centers—and Amazon handles: storage, packing, shipping, customer service, and returns This allows sellers to focus on growth, not logistics and risky FBM.

How can we help you build a successful Amazon store in the US as a foreigner?

Building an Amazon store in the US works best when it’s part of a complete, well-structured system—not something done in isolation.

Once the foundation is set, combine the right legal setup, product strategy, and smart marketing to scale with confidence.

That’s when Amazon stops being just another marketplace and becomes a long-term business that grows your revenue and credibility in the US as a foreigner.

With 10 years of experience helping foreign business owner thrive on Amazon with our strategy from legal setup to business operations, we can help you:

• Register a company in the U.S in your chosen state;
• Open a corporate bank account in the U.S with a 99% success rate;
• Choose the right company types for tax optimization in the U.S;
• Apply for US business licenses;
• Get an affordable, professional registered office address for business;
• Support to register DUNS Number for SaaS Businesses in Delaware 
• Support to open, authenticate, and manage Stripe Paypal Business in Singapore, Hong Kong, and the U.S;
• Handle all your tax accounting needs, timely annual filings, auditing, and more.

FAQs about selling on Amazon with a company in the U.S

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During 10 years of helping our clients expanding their business overseas in Singapore, Canada, the U.S and 10+ countries,  many business owners ask us this question early on. “Can I just use my personal bank account for business?”

• It feels faster;
• It feels cheaper;
• And at the beginning, it feels harmless.

But it isn’t. You should not use personal bank account for your company and its related business transactions. Using a personal bank account for business is one of the most common, and costly mistakes founders make.  And it shows up later, when the business is already running: 1 years if you are lucky, 5 years and the tax authority of another country send a letter asking you to clarify missing personal tax payment.

Our experts see this all the time. Startups, freelancers, even companies with real revenue still mixing personal and business funds. This isn’t just a “best practice” issue.

• It’s a compliance risk;
• It’s a tax risk;
• And in some cases, it’s a banking shutdown risk.

Why? Because banks, tax authorities, and payment providers don’t look at money the way founders do. They look at structure, traceability, and intent. And personal accounts fail on all three due to compliance, record-keeping, and tax complexities

In this guide, you’ll learn:

• What risks you’re actually taking when using personal bank account for business (even if “nothing has gone wrong yet”);
• How you should set up your business bank account the right way.

If you’re running a business, or planning to,  this is something you need to get right early. Let’s get into this

The truth of using personal banks for business

It is true that there is not a regulation prohibiting the use of personal accounts for business transactions. However, the reality of day-to-day business is much more complex.

Let’s start with the basics.

What are business transactions?

Business transactions are financial activities directly related to running your company. They’re not personal spending. They’re not “owner convenience” payments.

They’re transactions made in the name of the business, for the purpose of generating or supporting revenue. In reality, some common business transactions you as a buisness owner encounter, are:

What are the differences between a business account and a personal account?

Business account and personal account may look similar. They both hold money. They both send and receive payments. But they’re built for very different purposes.

You can see key differences highlighted in our table, prepared by our banking experts.

Why you should not use your personal bank account for your company business activities

Using a personal bank account for business rarely causes problems at first. It’s convenient and easy to access, especially since most founders already have a personal account. That’s why many founders continue using it in the early stages of business.

It works. Until it doesn’t. And problems show up later:

• When banks review unusual transaction patterns;
• When payment providers run compliance checks;
• When accountants can’t clearly separate personal and business transactions;
• The most serious issue arises when tax authorities question the source of the income and the applicable tax rate—whether it should be classified as business income or personal income, and which tax rate applies during an account audit.

At that point, fixing it is slower, more expensive, and far more stressful. In fact, there are 6 problems that our banking experts, tax specialists, and business consultants point out you may face if you use a personal bank account for your company without considering the long-term consequences.

Are there any exceptions to using a personal bank account for business?

In general, we strongly advise having two separate bank accounts:

• One business account, used strictly for company income and expenses.
• One personal account used only for your personal spending and savings.

Keeping them separate protects your company, keeps accounting clean, and makes tax reporting much easier. It also builds credibility with banks, investors, and regulators.

So when does a personal bank account make sense?  From our banking expert advice, there is one important scenario: When you distribute profit from your company.

If your company has made a profit, you are entitled to receive that profit as:

• Dividends (profit distribution to shareholders), or;
• Director remuneration / salary (depending on your structure), or;
• Returns from shares or investments.

In this case, the  approach should be:

1. The company declares profit;
2. The company transfers the approved amount from the business bank account to your personal bank account, clearly recorded as dividend or shareholder remuneration.

When you transfer profit properly:

1. Your business account remains clean and transparent;
2. Your financial statements stay accurate;
3. Tax treatment is clearer;
4. You protect limited liability;
5. You avoid compliance and audit risks.

And if you set up your personal bank account the right way (Our banking expert can consult and support you with that), your finance blossoms even more.

Your roadmap to business bank account adoption

You don’t always need a business account on day one. But there are clear moments when opening one stops being optional and starts being essential. You can think of it as a simple three-phase journey.

• 1

  Phase 1: Consult

• 2

  Phase 2: Open

• 3

  Phase 3: Discover

Open your business bank account today

When business income runs through a personal account, the risks don’t show up immediately. At first, it feels convenient. Later, it becomes expensive.

Effective business banking looks different.

It’s built on:

• Clear separation between personal and business finances;
• Clean records that stand up to tax reviews and audits;
• Banking structures that support growth, not restrict it.

When those pieces are in place, banking stops being a risk—and starts supporting operations. If you want to know when a business account becomes essential, explore our Business Banking Adoption Roadmap above

If you need help choosing the right bank and account type for your business stage, our experts help founders open accounts with a 98% success rate, using proven KYC frameworks and 10+ years of banking experience.

• Recommend the right bank and the right bank account for your needs;
• Support you in opening a reliable, trusted digital bank account or traditional bank account;
• Prepare necessary documents for account opening;
• Schedule an appointment with a Singapore bank representative;
• Monitor and assist in opening corporate bank accounts (physical and digital).

FAQs about using personal bank account for company activities

• Services: Quickbooks
• Rating Count: 125
• Rating Value: 4.7

Cloud accounting software has completely changed how SMEs manage their finances.

Manual bookkeeping, endless spreadsheets, and misplaced receipts? Those days are over.

However, choosing the right cloud accounting software isn’t always easy. With dozens of tools promising automation, real-time reporting, and multi-currency support, it’s hard to know which ones truly deliver.

Our GLAC accounting team has tested several platforms over the years, since the day our company was incorporated. Some are great, and we recommend incorporating them into our clients' accounting systems. Others are not so much; they under-delivered.

If you’re looking for reliable, easy-to-use digital accounting tools that actually work for small and medium businesses, you’re in the right place.

In today’s article, we will show you 6 awesome online accounting software that work for SMEs in 2025.

These tools will help you:

• Save hours on bookkeeping.
• Track cash flow in real-time.
•  Simplify invoicing and tax compliance.
• Collaborate with your accountant from anywhere.

First, we need to understand why many small businesses still avoid cloud accounting software

Why do many SMEs still avoid cloud accounting software?

Starting and running a small business isn’t easy. Managing finances with spreadsheets and manual methods? That makes it even harder.

And yet, despite dozens of affordable, user-friendly cloud accounting tools (QuickBooks Online, Xero, Zoho Books, Wave, FreshBooks, and more), over half of small businesses still don’t use accounting software. According to the SMB Group survey, 51% of small businesses with 1–19 employees rely on spreadsheets or nothing at all.

This begs the question: why are so many small businesses holding back?

Let’s break it down.

A study from SMB Group on why small businesses don't use accounting software

Top 6 cloud accounting software  (Tried and Tested)

QuickBooks Online

What it is

QuickBooks is a well-known cloud accounting suite from Intuit, designed for small and medium-sized businesses.

How it works

You can connect your bank and credit card accounts, import transactions, create invoices, reconcile accounts, and generate reports — all via browser or mobile app.

Cost

Subscription-based plans, tiered by features and number of users.

Why QuickBooks is a top choice 

• Proven reliability and a wide ecosystem of integrations.
• Familiarity among accountants and bookkeepers.
• Robust feature set that supports business growth.
• Recommended by IRAS to help hande tax filing and accounting work

Things to watch out for

• Some users find it feature-heavy for simple use cases.
• Costs may increase as you add users or advanced modules.
• Certain tools require a learning curve.
• QuickBooks has a specific version for each country with unique features (e.g., QuickBooks US, QuickBooks UK, QuickBooks Singapore).

Xero

What it is

Xero is a cloud-first accounting platform for small businesses, known for its automation and integration capabilities.

How it works

Xero enables you to sync bank feeds, manage invoices and payments, track expenses, and run reports — accessible via web or mobile.

Cost

Subscription-based plans depend on business size and needs.

Why Xero is a top choice

• Scalable and flexible for growing businesses.
• Strong third-party app ecosystem.
• Excellent support for international operations (multi-currency, local compliance).

Things to watch out for

• Some advanced features are available only in higher-tier plans.
• May require additional setup for specific tax or reporting rules.

Zoho Books

What it is

Zoho Books is part of the Zoho suite, designed for small businesses needing automation, workflows, and integrations.

How it works

Automates recurring invoices, syncs bank feeds, tracks expenses, manages multi-currency, and integrates with other Zoho tools or external apps.

Cost

Tiered subscription plans, with free trials or limited free tiers.

Why it’s a top choice

• Affordable compared to most full-featured accounting suites.
• Excellent automation and integration with the Zoho ecosystem.
• Ideal for businesses already using Zoho products.

Things to watch out for

• Free tiers limit users and transaction volumes.
• Advanced reporting and inventory features are only available in higher plans.
• Zoho Books may require extra setup if you do not use other Zoho tools.
• This accounting software is best used if you use the Zoho ecosystem for seamless integration.

FreshBooks

What it is

FreshBooks is a cloud-based accounting and invoicing solution popular with freelancers and small service businesses.

How it works

It focuses on simplicity: send invoices, track time and expenses, accept payments, and view basic reports.

Cost

Monthly subscription based on the number of clients and includes features.

Why it’s a top choice

• Very easy to use and set up.
• Great fit for freelancers, consultants, and small service-based businesses.
• Smooth mobile experience for on-the-go management.

Things to watch out for:

• Not as comprehensive as larger accounting platforms.
• Higher tiers are required for multi-user or advanced functions.

Wave

What it is

Wave is a free cloud accounting tool best suited for freelancers and small operations.

How It Works

It supports invoicing, expense tracking, and basic accounting, with optional paid add-ons such as payroll and payment processing.

Cost

Core accounting features are free; add-ons are paid separately.

Why it’s a top choice

• Excellent no-cost option for startups or solo entrepreneurs.
• Simple interface and quick setup.
• Ideal for managing basic bookkeeping.

Things to watch out for

• Paid add-ons can add up as your needs grow.
• Limited support and fewer advanced features.
• Wave may not scale well for medium or large businesses.

Sage Business Cloud Accounting

What it is:

Sage offers a cloud accounting solution designed for small and medium-sized enterprises, combining essential accounting tools with flexibility for growth.

How it works:

You can manage books, invoices, expenses, and reporting online, with features such as multi-currency and compliance tools.

Cost:

Subscription-based pricing with multiple tiers.

Why it’s a top choice

• Long-standing reputation for reliability.
• Balanced mix of accounting features and flexibility.
• Suitable for small to mid-sized firms seeking a trusted brand.

Things to watch out for

• Interface and experience may feel less modern than newer cloud platforms.
• Some capabilities require separate add-ons or upgrades.

How can we help you work with  QuickBooks and Xero?

Our top 6 cloud accounting software are QuickBooks Online, Xero, Sage, Zoho Books, FreshBooks, and Wave.  We recommend you test these 6 cloud accounting software for yourself.

At the moment, our Global Link Asia Consulting team is using QuickBooks and Xero because they fit best with our business models and our growth.

If you want to give QuickBooks and Xero a go, you can test the trial of these 2 softwares

If you want to take a step further and integrate QuickBooks and Xero into your business, we can help:

• Set up your QuickBooks or Xero account from scratch.
• Migrate your data securely from spreadsheets or another platform.
• Tailor the chart of accounts, reports, and automation rules to fit your exact business model and industry.
• Connect QuickBooks or Xero with your CRM, payment gateways, and banking systems
• Train your team to use key features confidently
• Ensure your books are accurate and compliant with local regulations with our Proadvisors.

FAQs

• Country: Hong Kong
• Services: Company formation
• Rating Count: 75
• Rating Value: 4.8

If you’re starting your global business journey with a Hong Kong company, understanding your company’s identification number isn’t just helpful; it’s essential. 

In this guide, our business experts will break down everything you need to know about the Business Registration Number (BRN), its conversion to the new Unique Business Identifier (UBI), and what that means for your company. 

By the end, you’ll know exactly how to manage your Hong Kong company more confidently and efficiently. 

The transition from BRN to UBI 

Starting December 27, 2023, Hong Kong began transitioning from the BRN to the Unique Business Identifier (UBI) system. 

Why? To unify business identification codes across all government departments and make digital interactions smoother. 

Here’s what you need to know: 

• Newly incorporated companies will automatically receive a UBI. 
• UBI is the BRN in function; it’s just more integrated. 
• Existing companies will have their BRNs automatically converted to UBIs. 
• You’ll need to use your UBI when dealing with any Hong Kong government agency. 

In this article, we’ll use BRN and UBI interchangeably to refer to your company’s business registration number. 

What Is a BRN (Business Registration Number)? 

The Business Registration Number (BRN) is a unique ID assigned to every business operating in Hong Kong by the Inland Revenue Department (IRD). 

Think of it as your company’s “identity card.” Without it, you can’t legally conduct most business activities in Hong Kong. 

In short, your BRN/UBI has three main traits: 

• It is mandatory for every business structure, from sole proprietors to multinational corporations.
• It is issued by the Inland Revenue Department (IRD). 
• It is used for all official interactions with the government.

BRN example from the IRD 

Why does a BRN/UBI matter in Hong Kong? 

Your BRN isn’t just a number. It’s the key that allows your Hong Kong company to operate legally, open bank accounts, and access essential services. 

Here’s what you can do once you have it: 

Every registered business must include its BRN on official tax filings and correspondence. It’s also used to identify your business clearly and distinguish it from others, keeping your operations transparent and compliant. 

Who needs to register for a BRN/UBI in Hong Kong? 

If your business earns income or operates for profit in Hong Kong, you must register and have a BRN/UBI. This includes: 

• All profit-generating businesses (trade, manufacturing, professional services, freelancing, clubs with income activities). 
• Any legal entity registered under the Companies Ordinance, even if it operates outside Hong Kong. 
• Foreign companies with a presence in Hong Kong (offices, branches, etc.). 
• Foreign entities leasing property or having a representative office in Hong Kong.
• Open-ended fund companies (OFCs) registered or re-domiciled under the Securities and Futures Ordinance (Cap. 571). 

What happens if you don’t register for a BRN/UBI? 

Operating without a valid BRN or UBI is a direct violation of Hong Kong’s Business Registration Ordinance (BRO). 

Here are the penalties: 

• Fine up to HKD 5,000. 
• Imprisonment up to 1 year.

Under Cap. 310, businesses must register within one month of the date operations begin.

If you register more than 12 months late, you’ll also need to: 

Pay all outstanding registration fees and penalties for past years (under Section 7(3)). 

How to find your Hong Kong company’s BRN or UBI 

You can locate your company’s BRN/UBI through these sources: 

Business Registration Certificate (BRC) 

• The BRC is issued by the IRD. 
• Your BRN/UBI appears clearly on the certificate. 

You should keep the original in a safe place. 

Official IRD Documents 

Tax returns, assessment notices, and correspondence from the IRD. 

eTax Portal 

• Log in to your eTax account. 
• Check and download your company’s registration info. 

Government Website 

Visit gov.hk’s BRN enquiry service and enter your company name to search for your BRN/UBI.

How to get a UBI for your Hong Kong company (The right way) 

To obtain a BRN or UBI, you’ll need to first incorporate your company in Hong Kong properly. ExportHelp can assist you through every step: 

• 1

  Incorporate

• 2

  Receive your business

Ready to get your Hong Kong BRN/UBI with us? 

Registering for a BRN/UBI is a mandatory step for running your business legally in Hong Kong and staying connected with government agencies. 

There isn’t a shortcut to mastering BRN and UBI in Hong Kong. 

But the businesses that stay compliant and scale fast all share three things in common:

• A proper company setup that meets Hong Kong’s legal standards. 
• Accurate BRN/UBI registration and up-to-date records with the IRD. 
• Reliable local support to manage filings, renewals, and compliance. 

Get these right, and you’re not just checking a box for government requirements. You’re building a strong foundation for trust, tax compliance, and international growth.

Want to make sure your Hong Kong company is set up the right way? We can help you from A to Z:

• Open a company in Hong Kong legally, fast with our one-stop support
• Get a reliable, experienced company secretary with our corporate secretarial service
• Support in opening your business bank accounts;
• Get an affordable, professional registered office address for your business;
• Support to open, authenticate, and manage Stripe and PayPal Business in Singapore, Hong Kong, and the U.S;
• Handle all your tax accounting needs, timely annual filings, auditing, and more.

Whether you’re a solopreneur, startup, or scaling business, we’ll make sure your Hong Kong setup is fully compliant, optimized, and affordable.

FAQs about Hong Kong BRN/UBI