Blue Fusion Blog
Thoughts, advice and opinion.
Thoughts, advice and opinion.
You may be thinking that it will ‘just be easier’ to use your current personal bank account to run your business through and that no one will really care. I am here to give you 5 reasons why you shouldn’t use your own personal account for your business.
If you use your personal account, it can and will become very confusing. You may look at your bank balance and smile, however you need to remember that you will have business expenses and bills to pay out of that balance. What would you do if you spent that money and could not afford your business expenses?
It will also help you when it is time to prepare your tax return and will be more transparent if HMRC come knocking.
Have you checked the terms & conditions for your personal account? Most UK banks will not allow you to use a personal account for business. If they think you are running a business through a personal account, they have the right to suspend or close that account. You may think that it will not happen to you, but I have seen it happen.
Although you may start small, having a business account will help you portray a professional image and look like a serious business. There are some suppliers that will only supply businesses with a business account.
If you have decided to set up your business as a limited company, then a business account is mandatory. Limited companies are a separate entity to its directors.
You may find you need to apply for a loan at some point and some lenders will expect and insist you have a business bank account before approving an application. This happened recently when businesses were applying for the bounce bank loans. If you had a personal account, banks were asking you to open a business account before applying.
You may not think you need a business bank account, but it will make running your business easier and reduce time and stress. In turn, it will give you more time to spend building your business.
We live in a digital world, so it shouldn’t come as any surprise that accounting software is taking steps into the digital arena. The introduction of Making Tax Digital in April 2019 means that any VAT-registered business with a taxable turnover over the VAT threshold is now required to keep digital records and use software to submit their VAT returns. But even sole traders can benefit from using a digital accounting package. Here is our quick beginners guide to cloud software, what to look for and why you should be a convert!Read more
No, we don’t mean your 2017/18 return. Though we really do hope that you’ve done that one! Have you filed your 2018/19 return? With the last tax year ending on the 5 April 2019, submissions are now open for your tax return. Yes, we know the deadline isn’t until 31 January 2020 but why wait? Here are our top 5 reasons why you should seize the day and submit your return now.Read more
The role of Bookkeeper and Accountant can sometimes be confused as being the same thing.
A bookkeeper will oversee the day-to-day record keeping and maintain accurate business records.Read more
With over 10 years of experience in bookkeeping and payroll, I can offer your business a safe, reliable pair of hands for your day to day finances. I enjoy pushing myself to expand my knowledge and skill set, passing these benefits onto you. I am now a licensed bookkeeping member with ICB, and I hold an AAT Accountancy Diploma. Additionally, I am now an associated member of the Certified Institute of Payroll Professionals.
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