How To Use Sub-Accounts on Prospa

If you are not familiar with sub-accounts as a business owner, you can think of it as a piggy bank with extra capabilities. Sub-accounts are smaller accounts that sit under your primary bank account. You can set them up for specific aspects of your business like marketing, tax, salary payments, supplier payments etc. You can now manage your money easily and plan your business finance with sub-accounts on Prospa.

In this guide, you will learn: 

• How to create a sub-account on Prospa
• Types of sub-account on Prospa and how to use them
• Key features of Prospa sub-accounts
• Benefits of a sub-account for your business

How to create a Subaccount on Prospa

To create a sub-account on Prospa, you need to have an approved business account.  

• Step 1

Log into Prospa on your iOS/Android 

• Step 2

Tap on ‘create multi sub-accounts’

• Step 3

Select your preferred sub-account type – standard, personalised, commercial bank and external bank.

Types of Prospa sub-accounts

There are three options to create a sub-account on Prospa. Here’s what you can do with each one. 

Standard sub-account

You can use this only for savings, taxes and salaries. Look out for more customisations soon.

How to set up a standard sub-account 

• Step 1: Log in to Prospa on iOS or Android
• Step 2: Tap the “create multi sub accounts” gradient bar
• Step 3: Select “standard sub-account” 
• Step 4: Select from the options: Savings, Tax or Salary account
• Step 5: Select your preferred bank to create sub-accounts from
• Add an auto-rule or skip this option
• Your new tax, savings, or salary sub-account number is generated

Personalised sub-account

You can use this for personal needs and customise based on your plans and goals.

How to set up a personalised sub-account 

• Step 1: Log in to Prospa on iOS or Android
• Step 2: Tap the “create multi sub accounts” gradient bar
• Step 3: Select “personalised sub-account” as the option and name your sub-account 
• Step 4: Add an auto rule or skip this option
• Step 5: Your new sub-account number is generated

Commercial sub-account

This gives you the option to create a sub-account with our commercial bank partners (WEMA, Polaris and Mainstreet)

How to set up the commercial bank sub-account

• Login to Prospa on iOS or Android
• Tap the “create multi sub accounts” gradient bar
• Select “commercial bank” as the option and name your sub-account (this is just a name for internal use to help you easily identify the sub-account – customers will see your approved business name when making a payment)
• Add an auto rule or skip this option
• Your new commercial bank account number is generated

6 key highlights of Prospa sub-accounts

• Each sub-account has a unique account number. You can receive payments directly into your sub-account instead of sending them to your primary bank account.
• You can make payments from your sub-account. No need to move cash to your primary account first, 
• Earn 4% Interest on savings. You get up to 4% interest on the savings in your sub-account.
• You can automate your sub-accounts. Set it up once and adjust whenever you want.
• It can be personalised. Customise notifications and set up sub-accounts to match your specific needs as a business owner. You can set up a sub-account for rent, internet bills and more.
• Remove/archive sub-accounts as needed. You can archive accounts that you don’t need anymore. This will remove it from your homepage, but the account number remains active along with your automation settings whenever you unarchive it. 

Use Case: How it works

Eniola is a make-up artist who needs to purchase new items in her make-up kit, pay a monthly stipend to her two apprentices and social media manager. She also needs to raise the rent for a new location with more visibility and proximity to her clients, leading to business growth.

To make sure she’s on track with these payments to keep her employees and customers happy and grow her business, she decides to save a percentage of her earnings to stay on track. 

Though she has a primary business account, she often forgets to deduct these amounts and has to dip into her personal savings at the end of the month to make purchases and remit employee payments late. 

But with the Prospa sub-accounts, she can now automate the process and manage each specified account in one place. She sets up sub-accounts to address these needs: a salary sub-account, a sub-account where she saves money to replace items in her make-up kit and other business essentials, a sub-account customised to deduct a percentage that goes towards rent. 

With the auto rules that she only needs to set once, she doesn’t have to worry about the funds to pay her team and keep her business running. She’s able to pay her employees on time, get essential materials to enhance her make-up service and build a fund towards projects that can scale her business. 

The benefits of sub-accounts for business owners 

There are various benefits of sub-accounts for business owners.

• Manage expenses

The versatility of a sub-account allows you to customize it to suit your business needs. You can plan and manage your business expenses easily by creating sub-accounts for each of them. 

• Budget smarter

If you decide to set aside 20% of your profit for marketing your business, a sub-account can help you stick to that budget. You can plan your marketing campaigns carefully and be aware of when you’ve used up your budget. 

• Meet your saving goals

With sub-accounts, you can create saving goals for your business needs. It can serve as a medium to raise funds to scale your business or invest in an aspect of your business.

• Automate admin

Sub-accounts automate financial operations so you can spend more time on your most important task: running your business.

Managing business finances is key in your business and a sub-account will help you organise your finances and achieve business goals.