Choosing a business bank account for your restaurant

Choosing a business account is one of the first money decisions you make when you open a restaurant. The right restaurant business account keeps your takings separate from your personal money, handles daily cash, and helps you stay on top of cashflow. This article is an overview of the main things to think about when choosing an account, not a full guide to the rules. It covers what to look for, how account types compare, and how to open one, and it points you to official sources for the detail. It is written for first-time restaurant owners planning to launch in the next 12 months.

Your set-up affects your tax and admin, and rules can vary depending on your circumstances, so check the official sources linked for the detail.

You should always consult a professional adviser for advice tailored to your business’s specific needs and circumstances.

Key takeaways

• A separate business account keeps your restaurant takings apart from personal money and makes bookkeeping simpler.
• By law, limited companies must keep business and personal money separate. Opening a business account is the usual way to do this. Sole traders do not have to, but many find it easier.
• For restaurants, the features that usually matter most include cash deposit handling, clear fees, fast setup, and card acceptance.
• Compare accounts on features, not on brand names, because the right fit depends on how your restaurant takes payment.
• Eligible deposits are protected by the FSCS up to £120,000 per person, per authorised firm.

Does your restaurant need a separate business account?

A limited company must keep its money separate from its owners’ personal finances. A business account is the simplest way to do this. If you trade as a sole trader, the law does not require a separate account. Some banks do not allow business use on a personal account, so check the terms. Many business owners operating as sole traders open a separate account anyway, because it makes bookkeeping, tax and cashflow easier to manage.

A separate account also gives you a clear record of what the restaurant earns and spends. That helps at tax time, and it makes your figures easier to share with an accountant or a lender. Mixing business and personal money in one account tends to cause problems later.

The right structure for your restaurant depends on your plans and your finances. For advice on different legal structures, including whether to trade as a sole trader, a limited company or other set-up, speak to a qualified accountant. You can read the basics of business set-up on GOV.UK, and check basic company rules with Companies House. If you are setting up a limited company, you can register it and apply for a business account at the same time through Zempler Bank’s company formations service.

What restaurants should look for in a business account

Restaurants have needs that office-based businesses do not. You take cash and card payments regularly, your income changes with the seasons, and you often need to set up fast. Compare accounts on the main features below, rather than on the brand name.

Cash deposit handling

Many restaurants still take a share of takings in cash. Check how each account lets you pay cash in, where you can do it, and what it costs. Some accounts charge per deposit, some charge a percentage, and some include a free monthly allowance. If you bank cash often, this is one of the biggest cost drivers to think about.

Fees and what they cover

Look past the headline monthly fee. Account costs can include charges for cash deposits, transfers, card payments, and extra users. A low monthly fee can still cost more overall if cash charges are high. Work out the likely cost based on how your restaurant trades.

How fast you can open it

If you need to trade soon, setup speed matters. Some accounts open online in minutes once your details check out. Others ask for documents and take days or weeks. Check what you need to apply before you start, so you are not held up halfway through.

Card payments and software links

Your account should work with the tools you already use. Check whether it links to your card machine or point of sale system, and whether it connects to your accounting software. Good links cut the time you spend matching payments to your records.

Access if you have limited credit history

New owners often have little or poor credit history. Some providers are more open to applicants in this position than others. If you have been turned away elsewhere, look for accounts that set out clearly who they accept. Lenders and account providers set their own criteria, so eligibility is never guaranteed.

Restaurant business account comparison: what to check

The table below covers the main points to weigh up. It is not a full list, and your priorities will depend on how your restaurant trades.

How much does a restaurant business account cost?

There is no single price for a business account. Costs vary between providers, and they change over time. Rather than chase one figure, work out what your restaurant is likely to pay. Base it on how you trade. Always check current pricing on each provider's website before you decide.

To estimate your likely monthly cost, work through these steps.

1. Note the monthly account fee, if there is one.
2. Estimate how much cash you will pay in each month, then apply the provider's cash deposit charge.
3. Add any charges for transfers, card payments, or extra card holders.
4. Add the cost of any add-ons you need, such as extra users or integrations.
5. Compare the total across two or three accounts, not just the headline fee.

Here is a simple example. Say your restaurant pays in about £4,000 of cash a month. An account with free cash banking up to a set limit could cost far less than one that charges per deposit. Run your own numbers. The cheapest option on paper is not always cheapest for a cash-heavy business.

Some figures, such as the VAT registration threshold, can change each year. Check current thresholds before you budget.

How to open a restaurant business account

Most providers ask for similar details, though requirements vary, so check what your chosen account asks for. Having them ready makes the process quicker. You usually need:

• Proof of your identity, such as a passport or driving licence
• Proof of your address, such as a recent utility bill
• Your business details, including what you do and where you trade
• Your Companies House number, if you run a limited company
• An idea of your expected turnover and how you will use the account

Once you have these, the steps are usually straightforward.

1. Compare two or three accounts against the features your restaurant needs.
2. Choose the account that fits how you take payment and bank cash.
3. Apply online and upload or confirm your documents.
4. Wait for the provider's checks to clear, then set up your card and app.
5. Move your card machine and software links across to the new account.

Opening a business account quickly: Zempler Bank

If you need a separate account for your restaurant, one option is Zempler Bank, which offers UK business current accounts built for hospitality, including an account with no monthly fee. You can apply online, often in minutes, and bank in the app or online once approved.

The cash deposit facility suits a cash-heavy business. You can pay in your takings at Post Office branches across the UK, wherever your restaurant trades. Accounts also include tools that match hospitality needs, such as cashflow tracking, pots for setting money aside for tax or VAT, integrated accounting, and a Making Tax Digital tool.

You also get UK telephone support from real people, and eligible deposits are protected by the FSCS up to £120,000 per person, per authorised firm. The Business Extra and Business Pro accounts offer cashback on eligible card spending.