Bank Account

[lindsay.butler]

Hi,

Is it best to have a separate bank account for my incomings and outgoings of my business, rather than through my own personal account?

What do most people do/suggest?

thanks

[Chatterbox Childcare]

When I was a sole trader and in a partnership I kept my own personal cheque accounts and put my business through them at no cost.

As a registered company I have to have a company bank account but it does cost.

When researching bank accounts I found that Barlcays were the best - give you 18 months free and then their fee is £6.75 a month with the only additional cost being for cash deposits. There are different rates with different banks so if you go down this route I would advertise checking out a few to get the best deal for how you bank.

Also note that if you are investigated by the HMRC then every account in your family/household will be looked at so keep very good records/statements for all of them, including your childrens savings accounts.

[moggy]

1 have 1 bank account- my CM income goes in and my mortgage and all household/business/personal expenditure goes out. My CM account book is kept up-to-date so it is clear what my income and business expenditure is.

If you have a separate account for your income you would have to keep transferring it over to your other account to pay your bills- much more chance of going overdrawn by mistake.

Why would you keep them separate?
You might want a separate account to hold client's deposits (if you are holding deposits) so you do not spend them. You might want to be putting money aside for your tax bill, but that might be better in a savings account.

[AdeleMarie88]

I have one account- I find it fairly straight forward- all my CM Incomings are referenced with dates and children's names, I also keep good accounts! I find it easier with my online banking too x

[Pixie dust]

[QUOTE][/If you have a separate account for your income you would have to keep transferring it over to your other account to pay your bills- much more chance of going overdrawn by mistake.

Why would you keep them separate?QUOTE]


In my area I had to have a business account to receive the 2,3 and 4 year old funded money. I actually find it easier having the two. I pay x amount in to my personal account each month for my own bills etc but then use my work account for all childminding related expenses. I can budget for bills like insurance, tax etc.

[bunyip]

Whatever works best for you.

I set up 2 online-only accounts, simply to help manage my money.

I use one to transfer in an average monthly contribution, so I have money ready when those big annual expenses come up: insurance renewal, membership subscriptions, NI, etc.

I use another to hold my LA funding payments. I then draw a set amount from it every week.

That's just me. If I kept it all in one current account, I'd spend 13 weeks of funding in the first month and have no money for the insurance, etc. when the bills came in. (I organise to compensate for my own stupidity. :p )