It’s Nothing Personal – Business Banking

Keep your business and personal finances separate.

This is fundamental oversight by many business owners, both new and established. Not doing so can result in:

  • Confusion when reviewing bank statements
  • A major headache when trying to gather info for your accounts and tax returns
  • Limited Audit Trail or having to include your personal statements as back-up with your business transactions
  • Missed Allowable Expenses as its very easy to overlook business expenses on your personal account
  • Messy record management costing you time, money and frustration.

For all your business income and expenditure activities, it is highly recommended that you:

Maintain separate bank accounts:

  1. Business Current/Operating Bank Account
  2. Business VAT/Revenue Bank Account

Use a Business Card for Business Transactions only:-

  1. Business Credit Card
  2. Business Debit Card

Set up routine Business Payments from your Business Operating Account

  1. Standing Orders
  2. Direct Debits

If these were originally paid from your personal account, swap them over to your business account.

Shop around for the best fees available when opening your business bank accounts.

Business bank charges are an allowable expense and banks will often waive some of their regular fees for a period, to entice new customers.

By maintaining specific business bank accounts, you have much greater transparency on your cash flow in addition to capturing all the financial activity vital for your Revenue calculations.

It’s also more professional when dealing with your customers.

Best Practice Solutions

 

Blog by: Best Practice Solutions, Waterford, Ireland.

Specialists and Mentors in Business and Financial Admin.