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Estate Agency Launch Programme · Stage 2 of 10
Money & Client Accounts
Put your money on clean rails before the first deposit or invoice moves.
How long
2–5 days
You’ll have
Business and client accounts open, cover in place, books running
Steps
4 steps
Resources
2 resources
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01 Step 01
Step 01
Open a business bank account
Clean separation of business money is the base your bookkeeping, tax and credibility all sit on.
Do it yourself
- Open a dedicated business current account in the company name. A traditional bank works; a fintech like Starling or Tide opens faster.
- Set up the card, online banking, and standing orders for recurring costs: CRM, portals, insurance.
- Connect it to your bookkeeping software from day one.
- Run all trading income and costs through this one account, and keep personal money out of it.
Common mistake · Running the business through a personal account “for now”, which turns AML, accounting and any future audit into a mess.
Time~2–5 days to open CostFree–£15/mo DifficultyEasy -
02 Step 02
Step 02
Open a separate client-money account
The moment you hold a penny of someone else’s money it is trust money, and the law says it must sit in a ring-fenced client account.
Do it yourself
- Know the rule: under the Estate Agents Act 1979, client money must be held in a separate account with “client” in the title, at an authorised institution, and never offset against your overdraft.
- Ask your bank for a designated client account by name. Not every bank offers one, so confirm before you commit.
- Keep sales client money and lettings client money separate, as the rules require.
- Decide up front whether you’ll hold client money at all. Many sales-only agents avoid it and leave deposits with the buyer’s solicitor; letting agents almost always must hold it.
- This pairs with Client Money Protection, which you set up in Module 3.
Common mistake · Assuming a normal business account is fine for holding a deposit. Mishandling client money is a criminal offence under the Act.
Time~1 week CostUsually free to a low monthly fee DifficultyMediumResource for this step
PDFClient money decision one-pager
Work out whether you’ll hold client money, and the account rules if you do. Not legal advice, so confirm the account type with your bank and scheme.
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03 Step 03
Step 03
Get your insurance in place
One overlooked defect or bad-advice claim can be existential, and some cover is a condition of your redress or CMP scheme.
Do it yourself
- Arrange Professional Indemnity, essential for agents and expected once you hold client money. Match the cover level to your average transaction values.
- Add Public Liability, and Employers’ Liability the moment you employ anyone, which is a legal duty.
- Consider office and contents, cyber, and landlord-adjacent covers if you do lettings.
- Use a broker who knows estate agency, and check what your redress and CMP schemes require.
Common mistake · Buying the cheapest PI with a limit far below your typical property value, which leaves a real claim uninsured.
Time~half a day via a broker CostPI from around a few hundred £/yr for a small agency (get live quotes) DifficultyMediumResource for this step
CHECKLISTAgency insurance checklist
The covers a new agency should hold, why each matters, and when it becomes mandatory.
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04 Step 04
Step 04
Set up bookkeeping and know your tax
Clean books and predictable admin keep you solvent through the long gap to your first completion and out of trouble at year-end.
Do it yourself
- Choose cloud bookkeeping (Xero, QuickBooks or FreeAgent) and connect the business account.
- Set money aside for tax from the start: Corporation Tax on profits, and PAYE if you employ.
- Track the VAT threshold and register once taxable turnover crosses the current limit. Check the live figure, as it changes.
- Line up an accountant who has estate agents on their books, especially for client-account bookkeeping.
- Keep a simple 90-day cash-flow view so the gap to your first completion never surprises you.
Common mistake · Ignoring the cash-flow gap. A sales agency can trade for months before a completion pays out, and left unbudgeted that gap can sink it.
Time~half a day to set up CostSoftware ~£15–£35/mo plus accountant fees DifficultyEasy–Medium
What you’ll have after this stage
- A dedicated business account with all trading money running through it
- A decision on client money, and a designated client account if you’ll hold it
- Professional Indemnity, plus the other covers your work needs
- Cloud bookkeeping connected and a plan for VAT, Corporation Tax and PAYE
- A 90-day cash-flow view for the gap to your first completion