Category Archives: Bookkeeping
When starting your own business, it is absolutely imperative that you set up a separate business bank account. Even if you are operating as a Sole Trader, it will make your life easier when it comes to separating your personal and business finances.
It really is the best advice for Start-Ups that Accountants regularly give!
Keep Business and Personal Separate
Whether you do your own bookkeeping or you decide to hire a professional, when it comes to accurately updating your financial records life becomes so much easier when all personal expenses are separated from business expenses. Far less confusion, hair pulling and time is required to finalise the books.
Should you be charging GST having additional bank accounts to easily transfer and separate out income and GST is vital, there is nothing worse then being lumped with a tax bill you can’t afford because you’ve overspent.
When it comes to tax time or worse your business is audited by the ATO, having separate personal and business accounts will provide the ability to quickly and easily show your business income and expenses by simply looking at the debts and credits in your bank account.
Setting Up Your Business Bank Account
Depending on the bank or credit union you elect to use, you will be required to bring different items to set up your account. Generally, it will be expected that you can provide the following items:
- Photo ID
- Certificate of Business Name Registration (opens in a new window)
- Business ABN (opens in a new window)
- Your Tax File Number.
- (Possibly proof of address)
If you are still unsure of exactly what will be required, there is no harm in calling your bank or credit union ahead of time, to make sure you will have all of the required documentation and information.