Some business owners make a habit of getting advice after they act. Time and time again we see assets purchased in the wrong entities, loans taken out in the wrong entity or names, incorrect structures, shares transferred to others without consultation, just to name a few.. These are often expensive actions to try and undo (if they can be undone) and result in lost business or tax opportunities.
Seek advice before you act – a phone call to a professional can save a lot of time, expense and stress so give us a ring – we love it!
Good Bank Account Management
There is generally no need for more than one or two business bank accounts – a cheque account and a savings account. People often associate multiple bank accounts with having money.
From an accounting and administration perspective it is better to keep it simple. All business receipts and payments should go into the business bank accounts. These business bank accounts need to be in the correct names too – if you are operating a Company then the bank account should be in the name of the Company or the Partnership name if you are operating a partnership.
Personal transactions through business bank accounts should be kept to a minimum. Best practice is to set up a regular automatic payment from the business account to your personal account so that all your personal transactions can go through your personal account.
A Good Filing System
It is a requirement by the Inland Revenue to keep business records for seven years. That is all well and good but if you can’t find them easily then that just creates unnecessary stress. When preparing your end of year financial statements we sometimes require access to the source documents like invoices and wage records to check descriptions or tax treatments so being able to easily locate these helps us to prepare your financial statements in a timelier manner. In today’s fast moving business environment, streamlining your processes and getting the right advice all add to an increased chance of both business and personal success. As we said above, if you need any advice or pointers give us a call – we would love to hear from you : )
Article by Michelle Adlington