Separate Your Business Account From Your Personal Accounts

If you have just started a business and you have not separated your personal and business finances it could spell disaster.

One of the very first things anyone should do when opening up a business regardless what kind of business it is or what size the business is,  you need to draw up a business plan and to open up a separate account as it would soon become almost impossible the differentiate between the two.

Here are some reasons why this is important:

• Opening up separate accounts is especially important if you have a business partner.
• There should be no confusion right from the start – and if you don’t make provision for this you and your partner will soon be taking strain.

There are many advantages when you have a separate business account:

• It is easier to manage the cash flow of the business.
• You will be able to see what is going in and out of the account at a glance.
• Bank and financial charges and expenses are processed through one account making it simpler to keep accurate records.
• If you have separate accounts, the temptation is not there all the time to use the profits of the business for your own personal use.
• Your tax returns are easier to do if you have separate accounts.
• You will come across as being more professional with a separate business account.

As part of their account services banks also usually offer the services of a specialist who’s on hand to advise you, irrespective of how big or how small your business is.