As soon as you set up your own business, it is super important that you make sure your business finances are kept separate from your personal ones. There are various reasons why this is important. First of all, it makes figuring out your corporate and personal tax a whole lot easier. It will also make it a lot easier to sell your business when the time comes to move on.
If your finances are currently in a bit of a mess, you might not think it is possible to split all your personal things from your business ones. But it is much easier than you might think! These handy tips will help you.
1. Get Different Bank Accounts
Firstly, if you don’t already have a business bank account, it is incredibly important that you get one as soon as possible. That way, you will know that all the money in your business account is purely for the company and its expenses. You will be a lot less likely to access a corporate account whenever you need some money for personal expenses! Plus, now that you have a pot of money just for your business, you will be a lot less tempted to use your personal savings to fund the business. You can see some of the best business bank accounts online at https://moneysupermarket.com.
2. Request a Business Credit Card
It is also a good idea to request a business credit card when you open a new business bank account. That way, you always have the chance to use a credit card whenever you have to purchase anything for the business. This will also give you the chance to build up a credit history for your business. If you are able to pay off all of the bills in a timely manner, then you will establish a good credit rating, which will help you if you ever need to apply for funding in the future.
3. Business Loans are Only for the Business
Talking about funding for your business, you need to remember that business loans are for business purposes only. Likewise, personal loans can only be used for your personal finances. However, there are some companies such as https://smallbusinessloans.co that actually provide personal loans that can be provided for corporate reasons. You should only look for these if you are sure that your business finances are already well separated from your personal ones, as it might confuse things further.
4. Hire an Accountant
One of the main reasons why so many people get their business and personal finances mixed up is that they are too busy to take care of them both. There is one way to get around this – you just need to hire an accountant who can take care of all your accounts and bookkeeping for you! Even if you just hire an accountant to deal with your business money, you will find that it is still one weight off your shoulders!
But the main thing is to always try and separate personal from business!