Banking

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Banking

Banking
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Happy New to you all. Here's another attempt to get this forum up and running.

I've just paid some cheques into my personal bank account and, as usual, it started me wondering should I have a business account. I'm afriad to look into it in case it forces my hand. Has anyone any ideas, views or experiences about banking. Would love to hear it.

Gaye

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Sat, Jan 13 2007 8:28 AM In reply to
catm

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Hi Gaye

I opened another current account at my bank on their advice. A business account has charges so is only really suitable if you're earning enough money! Having a separate account is very helpful when it comes to tax and bussiness accounts. You then have a clear picture of your income and outgoings.

I'm really not that great as 'a business woman' so would be interested to hear what others do too!

Cat x x x

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Sat, Jan 13 2007 10:36 AM In reply to
gaye

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That's interesting, Cat. So they had no problem letting you use a current account for business. Which bank is that?
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Thu, Jan 18 2007 11:16 AM In reply to
Jojo

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Hi

I've been running my own small business for nine years (ecology, not yoga) and I've always just used my normal current account. Basically I just used my old student account which had a lovely big overdraft facility! When the bank manager found out he wasn't all that happy as he said I should have a business account. I pointed out to him that I had checked with the tax man and there was no legal requirement for a business account for their purposes as long as my business was separate from personal money, and that as a business account would cost me loads of cash why would I want one? That stumped him! So the answer you want is just open any old account and don't tell them it's for your business. You only need a business account if you start having a huge turnover and need services like overdrafts and help with cash flow. Good luck! (and any other small business questions are welcome - I've been there!)

love and chocolate

Jo

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Fri, Jan 19 2007 8:07 AM In reply to
gaye

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Thanks for that, Jo. I suppose the real question is 'are you entitled to free banking' if using the account for business purposes. I have a current account which I've stopped using because my husband started a job with a bank and had to open an account with them. I'll just start using the old account for my business

Thanks again,

Gaye

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Fri, Jan 19 2007 8:42 AM In reply to
conwaym

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Generally you can get 18 months free banking if you open a business account. Main reason to have one is if you want chqs etc in a business name and can avoid complications with the taxman!

An easy way to avoid most charges is to get a current and a savings account. Pay all chqs into business savings account (foc) then xfr online into business current account as required. That way you only get charged for writing chqs from the business. Also, it is good practice to leave 20% in your saving account for tax so if you only ever move out max 80% on each 'payment in' you are never going to get caught out.

You can also then do online xfrs direct to your personal account - I find it just makes things far less confusing as I know all expenditure comes from that account and I don't have to discuss whether 'that-amount-I've-forgotten-about' ( x 100 or so), was for business related stuff or personal when everything goes in to the IR

love

Maria

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Sat, Jan 20 2007 11:31 AM In reply to
gaye

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That's made me think of something else. What about when people may in cash. Should you deposit that to your business account?
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Sat, Jan 20 2007 1:59 PM In reply to
conwaym

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It should all be logged in your books, not necessarily paid into your bank account, but you should keep clear and accurate records for the IR. If you don't keep proper records paying into a bank account is an easy way of recording it.

I personally always log absolutely ALL cash received......................... as I'm sure everyone one else does too.................

Maria

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Sat, Jan 20 2007 3:18 PM In reply to
gaye

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thanks for that, Maria. I account for everything but only lodge cheqes. The account I'll be using is with the co-op bank and they don't have a branch here in Edinburgh, so I'll be using 'paying-in envelopes' in the post-office. Maybe I won't use that account afterall.

Who do you bank with?

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Sun, Jan 21 2007 3:04 AM In reply to
conwaym

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NatWest - have done for aeons. They are really easy-going compared to others and their on-line facilities are really good.

best wishes,

Maria