You should keep in mind the terms and conditions attached to each of your business accounts. As the business grows and circumstances change you may find that these terms no longer fit your situation.

It is better to go to the bank to discuss how you think your account may operate. It may be necessary to negotiate new conditions for your account rather than to breach a term, eg exceed a credit limit and incur extra fees and run the risk of getting a bad credit rating. It is important to build up a good relationship with your bank:

• don't allow the business account to become overdrawn unless an overdraft limit has been agreed
• don't exceed any overdraft limit without prior agreement
• stick to the terms and conditions

You can manage your bank account more easily by:

• ensuring that only appropriate persons are authorised to make payments from the bank account
• keeping records of all transactions in the bank account
• ensuring you keep and examine your bank statements
• using your bank statements to check the financial position of the business
• cross-checking your statements with your business records to ensure that all transactions tally

Online banking can make it quick and easy to check balances and payments. Your relationship with your bank will be improved if they understand your business. You can help them to improve their understanding by:

• talking to the person managing your account on a regular basis
• if requested, sending your accounts to the bank every year
• providing the bank with updated copies of your business plan when you need new loans or increased overdraft facilities.
• letting your bank know if you plan any unusual transactions, eg significant capital expenditure

Notify the bank immediately of any problems your business may be experiencing.