Countingup Business Account Review: Features, Fees & Banking Insights

In the ever-evolving landscape of financial technology, Countingup has emerged as a game-changer for small businesses, freelancers, and sole traders. Launched in 2017, this innovative fintech company has taken a bold step by merging business banking and accounting into a single, user-friendly mobile app. The brainchild of Tim Fouracre, a chartered accountant with a vision to simplify financial management for small businesses, Countingup has quickly gained traction in the UK market.

At its core, Countingup offers a business current account that seamlessly integrates with powerful accounting tools. This unique combination allows users to manage their finances, track expenses, create invoices, and monitor their business performance all from the palm of their hand. The app’s intuitive interface and robust features have made it a go-to solution for entrepreneurs who want to spend less time on paperwork and more time growing their businesses.

Is Countingup a Bank?

While Countingup provides many services typically associated with traditional banks, it’s important to understand its unique position in the financial services landscape. Countingup operates as an e-money institution, not a fully-fledged bank. This distinction is crucial for several reasons:

1. Regulatory Framework: Countingup is authorized and regulated by the Financial Conduct Authority (FCA) as an Electronic Money Institution. This means they can offer payment services and issue electronic money, but they don’t have a full banking license.
2. Account Provision: The accounts are actually provided through Prepay Technologies Ltd, a well-established player in the fintech space. This partnership allows Countingup to offer banking-like services without being a bank themselves.
3. Fund Protection: Unlike traditional banks, Countingup doesn’t offer Financial Services Compensation Scheme (FSCS) protection. However, they adhere to strict FCA regulations regarding the safeguarding of customer funds. This means your money is held in segregated accounts with established banks, ensuring it’s protected even if Countingup were to face financial difficulties.
4. Service Scope: While Countingup offers many features of a business current account, some traditional banking services like overdrafts or loans are not available.

Understanding this structure is essential for potential users. While Countingup may not be a bank in the traditional sense, it offers a modern, streamlined alternative that caters specifically to the needs of small businesses and self-employed individuals.

Who Should Use Countingup?

Countingup’s unique blend of banking and accounting services makes it an attractive option for a specific segment of the business world. Here’s a closer look at who can benefit most from this platform:

1. Sole Traders and Freelancers: If you’re a one-person operation, Countingup can be a game-changer. It eliminates the need for separate banking and accounting software, saving time and reducing complexity.
2. Small Limited Companies: Startups and small businesses with straightforward financial needs will find Countingup’s all-in-one solution particularly useful.
3. Time-Strapped Entrepreneurs: For those who wear many hats in their business, Countingup’s automated features can free up valuable time that can be better spent on core business activities.
4. Tech-Savvy Business Owners: If you’re comfortable managing your finances through a smartphone app, Countingup’s mobile-first approach will appeal to you.
5. Those New to Business Finance: The simplicity of Countingup makes it an excellent choice for those just starting their entrepreneurial journey and might be intimidated by complex financial management systems.

However, Countingup might not be the best fit for:

• Larger businesses with complex financial structures 
• Companies requiring extensive international banking services
• Businesses needing frequent cash transactions or cheque processing
• Those who prefer face-to-face banking services

Countingup Features

Countingup’s feature set is designed to simplify financial management for small businesses. Let’s dive deeper into what the platform offers:

1. Integrated Accounting Software:
   • Automated bookkeeping that categorizes transactions in real-time
   • Generation of profit and loss reports at the touch of a button
   • Easy creation of financial statements for tax submissions
2. Invoicing and Billing:
   • Create and send professional invoices directly from the app
   • Track unpaid invoices and send reminders to clients
   • Automatic matching of payments to invoices
3. Expense Management:
   • Receipt capture feature allows you to snap and store receipts digitally
   • Automatic categorization of expenses for easier tax calculations
   • Real-time tracking of business spending
4. Tax Estimation:
   • Live tax estimates help you set aside the right amount for your tax bill
   • Simplified self-assessment with categorized income and expenses
5. Banking Features:
   • UK account number and sort code for receiving payments
   • Contactless Mastercard for business expenses
   • Ability to set up standing orders and direct debits
6. Reporting and Insights:
   • Real-time profit and loss reports
   • Cash flow insights to help with business planning
7. Open Banking Integration:
   • Connect with other financial tools and services for a comprehensive view of your finances

These features work together to create a comprehensive financial management system that goes beyond simple banking or accounting software. The real power of Countingup lies in how these elements integrate, providing users with a holistic view of their business finances.

Countingup Fees & Charges

Countingup offers a flexible pricing model that adapts to your business’s financial activity. The fee structure consists of two main components: monthly subscription fees and transaction fees.

Monthly Subscription Fees: After a 3-month trial period, the monthly subscription fees are structured based on your total monthly deposits:

1. First Tier: £3/month
   • For businesses with total monthly deposits between £0 – £750
2. Second Tier: £9/month
   • Applies to accounts with total monthly deposits between £750 – £7,500
3. Third Tier: £18/month
   • For businesses depositing over £7,500 per month

This tiered system adjusts with your business’s performance, ensuring you pay a fair price based on your account activity.

Transaction Fees: Transaction fees are applicable from the moment you start using your account:

• Account transfers in/out: 30p per transaction 
• Direct debit out: 30p per transaction
• Foreign Transaction Fees: 3% applied to the transaction amount
• ATM withdrawal: £1 per withdrawal
• Post Office Cash Load: 0.5% (with a minimum fee of £2)
• PayPoint Cash Load: 3%
• Replacement Card: £5

Additional Information:

• The monthly subscription covers core banking and accounting features of the app.
• Transaction fees are charged in addition to the monthly subscription.
• The pricing structure is designed to be transparent, allowing you to anticipate costs based on your business activity.

Countingup’s fee structure aims to provide a balance between affordability and comprehensive service. The combination of integrated banking and accounting features could potentially offer savings compared to using separate services for each function. However, it’s important to consider your specific business needs and transaction patterns to determine if this pricing model is cost-effective for your situation. Always review the full terms and conditions for the most up-to-date and detailed fee information.

Countingup Customer Reviews

To get a well-rounded view of Countingup, it’s essential to consider the experiences of actual users. Across various platforms, Countingup has garnered generally positive reviews, with users praising its ease of use and time-saving features. Here’s a summary of customer sentiment:

Positive Feedback:

• Many users appreciate the simplicity of having banking and accounting in one app 
• The automatic categorization of expenses is frequently mentioned as a standout feature
• Freelancers and small business owners often comment on how Countingup has streamlined their financial management

Areas for Improvement:

• Some users have reported occasional app glitches, particularly during updates
• A few customers have expressed a desire for more advanced reporting features
• The lack of telephone support has been a point of frustration for some

Overall, the consensus seems to be that Countingup excels in its primary goal of simplifying financial management for small businesses. However, as with any technology, there’s always room for improvement and expansion of features.

Who is Eligible for a Countingup Account?

Countingup has specific eligibility criteria to ensure they’re serving their target market effectively. To open an account, you must:

1. Be a UK resident with a valid UK address
2. Be at least 18 years old
3. Have a UK mobile number
4. Own a smartphone capable of running the Countingup app (iOS or Android)
5. Be operating as a sole trader, freelancer, or limited company

Additionally, Countingup is designed for active businesses. They may require proof of trading activity or a projected start date for new businesses.

It’s important to note that certain industries are restricted due to regulatory requirements or risk assessments. These typically include high-risk or heavily regulated sectors such as financial services, gambling, or cryptocurrency businesses.

How to Open a Countingup Account?

Getting started with Countingup is a straightforward process designed to get you up and running quickly. Here’s what you need to know:

1. Initiate Your Application – Limited Offer: No subscription fees for first 3 months – 
2. Complete the Digital Application: Fill out the online form with your details. Don’t worry about credit checks – Countingup doesn’t perform them as part of the application process.
3. Verify Your Identity: You’ll need to provide a clear photo of a valid ID and record a short video for identity verification. This step ensures the security of your account and complies with financial regulations.
4. Quick Approval and Activation: In most cases, applications are processed and approved on the same day. Once given the green light, you can start using your account right away.

To ensure a smooth application process, have the following information ready:

Personal Details:

• Full legal name
• Current residential address
• Date of birth
• Nationality
• Valid UK mobile number
• Active email address

Business Information:

• Business name
• Business structure (Limited company or sole trader)
• Detailed description of business activities
• VAT registration number (if applicable)

Also providing Comprehensive Business Information: (Countingup needs to understand your business thoroughly)

• A clear explanation of your business operations
• Progress made so far in establishing your business
• Your marketing and advertising strategies
• For regulated industries, provide relevant registration numbers
• Links to your business website, social media profiles, or online marketplace stores (if available)

Business Types Not Supported:

Countingup focuses on serving specific business structures. They currently do not support:  Partnerships, Charities, Community Interest Companies (CICs), Charitable Incorporated Organisations (CIOs), Trusts, Companies limited by guarantee.

For regulatory and risk management reasons, Countingup doesn’t provide services to certain industries, including: Weapons and armaments trading, Cryptocurrency and NFT trading, Stock market and forex trading, Money service businesses, Gambling and betting activities, Precious metals and stones trading, Bullion trading, CBD product sales, Religious organizations, Political parties/organizations, Social/community clubs, Not-for-profit services, Escort services and certain regulated businesses without proper licensing.

By providing clear and accurate information during the application process, you can ensure a quick and smooth onboarding experience with Countingup. Remember, the goal is to get you set up quickly so you can focus on what matters most – running and growing your business.

In conclusion, Countingup represents a significant shift in how small businesses can manage their finances. By combining banking and accounting into one streamlined app, it offers a unique solution to the often complex world of business finance. While it may not be suitable for every business, for many freelancers, sole traders, and small companies, Countingup provides an efficient, cost-effective way to handle their financial needs. As with any financial decision, potential users should carefully consider their specific needs and compare Countingup’s offerings with other available options to ensure it’s the right fit for their business.