If you are starting a business, one of the first things you will need to do is to open a bank account. A business account will save you time, simplify your accounts and help you organise your businesses finances. In some situations, opening a bank account is a legal requirement. If you are running a limited company or partnership, by law you will need to open a business account. As you and your business are considered to be separate legal entities, your finances must be separate. If you are a sole trader you can use a personal account, although in many cases this is not practical. As a sole trader, using your personal account could mean you are in breach of your bank's terms and conditions. By separating your business finances from your personal accounts, your bookkeeping will be streamlined and simple. You will be able to easily monitor your business expenses, which will ensure you pay the correct amount of tax. If you ever need a loan, being able to show accounts will help you gain approval for the credit you require.