If you run a limited company, even if you own it 100%, the business’s money is not your own. As a director, unless they are a legitimate business expense, you can’t spend the company’s money on your own personal expenses.
As a self employed person, you take drawings from your business, but you should still keep a separate bank account. So, keep your accounts clean by keeping your personal finances separate from the business ones.
- Check bank statements
You should spend time checking your bank statement every week or at least once a month. This will not only alert you of fraud or a mistake by your bank. But will give you a better understanding of where you are spending the money. All successful businesses have great credit control and spend their money smartly. So, make this a habit from day one.
- Put time aside to do your bookkeeping regularly
When you start your first business, you are so busy that you would often do your bookkeeping late. That is not good, as if you’re tired simple tasks will take longer, and you’re more likely to make mistakes as well.
So, if you need to do bookkeeping outside of working hours when you could be earning money, then why not consider letting us handle this burden for you.
If you still want to do the bookkeeping yourself, you may find that using a suitable accounts software package takes much of the trouble away. We highly recomend KashFlow online accounts system, which you can access anytime and anywhere. This is very helpful for a busy new business owner.
- Get help with your finances
This is an area where you shouldn’t save on professional help. If from the beginning you get the finances right, it will save you money and trouble on the long run.