Keep Business And Personal Banking Separate
When starting up, one of the first things you’ll need to do is open a business bank account, this will help you to keep your business and personal finances separate.
Why is this important to you?
Save yourself money and time by keeping these two areas of your finance separate, because if you have outsourced your bookkeeping, you’ll be paying for transactions to be processed and allocated if you have mixed the two together.
The transactions have to be entered into the software and allocated to drawings, taking up time that the bookkeeper could spend simply data entering.
What about a savings account?
Plan for your tax liabilities by opening a business savings account and if viable aim to save money each month into the account in advance of your tax becoming due. The amount you can save will depend on your business’ financial position, your accountant will be able to advise you of an achievable target.