Have you ever struggled to keep track of your business’ finances? You’re not alone! All of the rules and regulations with HMRC can trip up a lot of small business owners and if you work from home, mixing work bills with your bills is common.
Not having an accountant makes everything harder too. The good news is that there are tools available to help you manage your business accounts and keep your income and spending on track.
There’s an app for that
The hardest part about running your own business is keeping track of where your money is coming from and where it is going. Currently, there are a multitude of apps available to help you keep track of your finances as a small business, and each offers something a little different. We’re going to review one app that has come to the UK market that describes itself as a “premium business banking service”.
Amaiz business banking is an app for iPhone and Android that allows sole traders, entrepreneurs, and small business owners manage their finances.
What is Amaiz?
Amaiz is a challenger bank, which are smaller, recently-created retail banks in the UK that usually are meant to serve a purpose that bigger, longer-established commercial banks either do not cover well or even at all. As a challenger bank, Amaiz allows you to open an account that you can deposit money to and withdraw from, and is meant to help you keep track of your business expenditures.
How does it work?
You need to download the app and answer some info about your business, provide some documents, and pass a KYC procedure and you Amaiz business current account will be opened.
What can you do with the account?
The idea behind the account is that you use it to make your business accounting easier. Pay invoices and bills directly out of the account, and when tax time comes, if there’s any confusion regarding what you can claim on your taxes or what needs to be paid to HMRC, they have a team of accountants who can answer any questions you may have.
When you get the account, you will also receive an Amaiz Mastercard that you can use to pay for things out of the business account. You can get money into the account by making bank transfers from any UK bank or by adding cash at your nearest post office.
You can keep track of your cash flow with the different charts and tools available. See where the bulk of your money goes with the expense categorisation chart, keep track of how your balance moves, and even take a look at your profit and loss chart. Every tool is meant to help you monitor the financial health of your business in an easy and understandable way.
Send invoices to clients straight through the app, which allows you to customise invoices and send quotation drafts to your clients. You don’t have to worry about making a careless mistake on the invoice because the app makes it easy to set the terms and conditions by breaking the process down into smaller steps. You can also keep track of what invoices have been paid, still need to be paid, and are overdue.
Currently, Amaiz has accounting software integration with Free Agent, so you can easily sync your Amaiz account to the accounting software and let them work together for you. Gone are the days of needing to add every expenditure and pound spent to a spreadsheet because anything bought with your Amaiz card will automatically be accounted for. If you do not use FreeAgent, Amaiz allows you to download a CSV statement and upload it to other accounting software. Plus, it is possible to integrate many other services via OpenAPI.
Besides the core business account, Amaiz offers a jar sub-account that allows you to put aside money to save. Maybe you’re looking to invest in new equipment in the future or open up a new branch, whatever the use, you can stash that cash away in your jar.
While the app is convenient for on-the-go, sometimes you want an overview or a clearer picture, and for that, there is Amaiz Web, the web version of the app. Do nearly all you can on mobile with the ease of using a computer.
What are the drawbacks?
As with all things, there are definitely cons to the app. For one, there is no brick-and-mortar bank for you to deposit or withdraw your money instantly. The only way to add cash to your account is to top it up at your local post office or to transfer from another bank account.
The app is also still in its infancy. While it already has a lot of features available, there are still many more in the works, which you can see on their website. There is also a limit to how much money you can keep in both the business account and jar sub-account. The limit is £40,000 for sole traders and £70,000 for LTDs, which might sound like a lot at first but should your business do well; it might limit you. The jar sub-account for saving also does not offer any interest at present, so any money you leave in there won’t earn. The last drawback is the limited accounting software integration. Currently, they only allow complete integration with FreeAgent, although you can download a CSV statement to use with different software or integrate it via OpenAPI by yourself.
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Despite some minor drawbacks, this app has the potential to be an incredible tool for small business owners and entrepreneurs. Without the luxury of having your own team of accountants, bookkeeping can be a complicated affair, but with new apps like Amaiz, you and your business are set for financial accounting success.