Tide vs. Monzo: Which is better for Businesses?

With so many businesses operating online today, there has been an exponential need for the use of digital banking platforms. Two of the prominent platforms are Tide and Monzo.

With these online banking landscapes, you can send and receive payment for goods, integrate your business with accounting software, manage business funds in one dashboard, utilise the mobile app on the go and so on.

While the two banking services offer varying features and benefits, they remain attractive tools for many customers. Incorpuk, in this comprehensive guide, presents everything you need to know about Tide and Monzo.

And if you’re on the lookout for which to subscribe to, then ensure you read this guide to the end.

What is Tide?

Tide is an online banking platform offering financial services to small and medium business owners. The platform is known for its efficient and user-friendly app that allows business owners to utilise its invoicing tool, carry out expense management, integrate with other software packages like QuickBooks and Xero, and open a business current account and so on.

Tide is currently authorised by the Financial Conduct Authority. Although headquartered in London, it also has several branches in some parts of the world, including Berlin and Hyderabad. As a business owner using Tide, you have the chance to either use Tide free, Plus, Pro or Plus Cashback depending on your business needs. Each of these premium plans, however, comes with a varying fee, features and benefits.

Features of Tide

Here are some of the features of a Tide business account.

1. Account integration

As a digital banking platform, Tide offers the ability to integrate with third-party software. It can be integrated with popular accounting packages like QuickBooks and Xero. With this, bookkeeping becomes easy, and moreover, this helps ensure effective financial management.

2. Expense Management

With expense management tools, businesses can easily track and keep records of their expenses. As such, it becomes quite easier to monitor what a business spends more on. Moreover, budgeting can be easily planned accordingly.

3. Access to varieties of business accounts.

Whether you are a sole trader or you own an incorporated business, you have the chance to open up to four categories of Tide business accounts. This way, you will be able to choose the one that perfectly suits the business. You can either subscribe to the Free, Plus, Pro and Cashback plans.

4. Access to Tide Expense Card

You are also eligible to receive a Tide expense card as a business owner. If you manage a team that is up to 35, you can order this card for everyone just with a single business account. With that, you will also be able to set a monthly spending limit for the card. Moreover, you can freeze and unfreeze the card through the Tide mobile app. As members of the team spend, the expenses are categorised in such a way that it eases financial management.

5. Mobile App

With the Tide mobile app, you can access your business account dashboard at a go. With that, you can manage expenses, transfer, contact customer support, etc, with just a few clicks. Beyond using the mobile app, you can also access the app on your computer.

6. Invoice Management

Tide also provides invoice management tools that allow you to send invoices. It can also provide reminders for invoices that are due thereby improving time efficiency.

Pros and Cons of Using Tide

Here are the advantages and disadvantages of using Tide.

Pros

1. Setting up a Tide business account is quite easy and straightforward and can be completed in a few minutes.
2. Tide offers additional services like invoicing and access to credit tools, which makes it more attractive to small business owners.
3. Their mobile app is user-friendly and generally easy to navigate.
4. Customer service support can easily be accessed through phone calls and chats.
5. There is an availability of expense management tools that help track spending.
6. Business accounts are also protected by FSCS (Financial Services Compensation Scheme).
7. You can also choose the category of the business plan you want, making it easier to stay within budget.

Cons

1. Cash deposits could attract some fees
2. Invoicing tools are quite so basic

What is Monzo?

Monzo is also a digital banking platform providing innovative financial solutions to businesses. It has a dedicated mobile app available for businesses to track their spending and set budgets. By downloading the Monzo app and taking a few steps, you will be able to create a business account with them. Business accounts on Monzo are also protected by the Financial Services Compensation Scheme.

As part of the financial services offered by Monzo, the platform has partnered with Wise to create a medium and enhance international payments and transfers. With this, you will be required to pay a small fee depending on the volume of payment or transfer you are making. It also has the integration feature and thus can be integrated with accounting tools like Xero and QuickBooks.

Apart from the regular or free Monzo business account, you can also use the Pro version, which comes with additional features. Beyond that, you can always enjoy the tax pot feature in Monzo, as this allows you to budget a part of your income toward tax payments.

Features of Using Monzo

Here are some of the features of a Monzo business account.

1. Ability to track expenses

With the Monzo mobile app, you’ll be able to track every expense made. Moreover, you'll be provided notifications as you spend. This way, it becomes easier to control your business expenditure and maintain a better financial standing.

2. Availability of budgeting tools

There are also budgeting tools which you could use to set limits for spending and categorise every expense made. With that, it’s much easier to maintain the business's financial goals.

3. Tax Pots

With the tax pot feature, a set percentage of your earnings or payments is added to the tax pot still within the business account. This way, it becomes easier to generate funds for each tax year.

4. Integration function

Monzo also allows you to integrate with popular accounting software like QuickBooks and Xero. This way, bookkeeping and financial management practices are done effectively.

5. Invoice management

Monzo allows you to send invoices directly to your customers. Beyond that, it reminds you of the invoices that are due. With that, you can effectively manage your time when it comes to invoicing.

6. Mobile app

There is also a mobile app which you can easily access on your smartphone. Through the app, you can make payments and transfers, enjoy the tax pot and invoice management feature, communicate with customer service support and so on.

7. Multi-user Access

With a Monzo Business Pro account, you can add up to 3 users in just one account. These users will be allowed to access the account dashboard, send invoices, make and receive payments, edit necessary information, view all transactions and lots more.

Pros and Cons of Using Monzo

Here are some of the advantages and disadvantages of using Monzo.

Pros

1. With a Monzo account, your funds are protected by the Financial Service Compensation Scheme.
2. Setting up an account is simple and can be completed with a few clicks.
3. 247 customer service support is available through chats, email and phone calls.
4. Monzo app is user-friendly and easy to navigate.
5. The instant notification function on the Monzo account makes it easy for businesses to access up-to-date information and thus be informed of account activity.
6. Tax-pot options make it easier to meet up with tax demands every year.

Cons

1. Available invoicing tools are quite limited in terms of their functionality.
2. Not every business sector is allowed to open a business account on Monzo.

Differences between Tide and Monzo

While Tide and Monzo are both amazing banking platforms for business owners, they offer some distinct features that make them different. Here are some of the differences between the two.

Tide vs. Monzo: Which is better for Businesses?

Tide and Monzo are both great digital banking platforms. In fact, they both offer exciting features that make them attractive to businesses. In most cases, the choices between the two will greatly depend on your business needs and, more so, the specific feature you would like to utilise. You should consider using Tide if:

1. You value the integration feature and would want more options for the accounting software.
2. You have a larger team member and would want to order payment cards for them.
3. You aren’t on a low budget and would like to explore more features at a reasonable cost.

On the other hand, you would want to consider using Monzo if:

1. You’re on a low budget, as Monzo is relatively cheaper to use.
2. You want insights into your business spending habits and would like to utilise a budgeting feature.
3. You are likely to switch accounts later, as Monzo is part of the Current Account Switch Service.

Conclusion

Tide and Monzo are two important digital banking platforms in today’s era. While both offer similar and distinct features and benefits, it is important to consider your unique business needs and goals before selecting the one that best suits. Do you have a question about which is best for you between Tide and Monoz? Kindly contact one of our experts here for help today.