Here at AK Accountants, we work hard to ensure our clients have constant access to the latest information and advice in regards to all aspects of accounting and finance.
In this post, we will outline the essentials of managing business finance, and what we can do to ease the process.
We have a lot of advise to offer our clients and potential new customers. We have gained a lot of experience with multiple years in the industry. Our first advice would be to ensure the clients try their best to keep personal and business finances separate.
Rather than keeping all income and outcome transactions in one single personal banking account, we would recommend you to separate these accounts by opening a business account. This is because it can help the process of filing your business accounts easier and simpler to understand for both you and your accountant.
Based our own personal experience, it can be very time-consuming for the business to try and separate and identify the finances. Especially when doing it at the last minute. We have noticed when we advise our clients to separate the accounts, they have an easier time submitting their accounts.
A method of actually separating your accounts would be to apply for a business bank account. If you are a limited business, you are required by law to have a separate account. However, a majority of sole traders do not have a business bank account – and this can be a very risky choice.
There are many advantages of having a business bank account, with the main one being the simplicity it creates for filing your taxes. It can also make the process of claiming back the VAT easier as all funds are being channelled through one, straightforward account.
We hope we have been able to help you and your business.
If you ever require one-to-one advice, you can contact us here.