There is three leading status that you can take when you operate a business: sole trader/ self-employed, business owner and company director.
For clarity, you should either have a UTR number or a Company registration number. Depending on your answer, please see the tips below;
For businesspeople with UTR number
· Open a separate business account; ask your bank for a sole trader business account. You do not need any registrations, licences, or certification to open this account.
· Separate your expenses from your business trading costs and fees.
· Make sure all the money generated from your business get deposit directly into the business account.
· Make sure all the expenses generated from your business are paid from the same business account.
· Use excel templates or any accounting management software such as QuickBooks to budget, plan your finance and organise your financial books every end of the month.
For businesspeople with Company registration number
· Open a separate company business account; ask your bank for a limited company business account. It would help if you had company registrations, proof of address, and directors personal ID documents.
· Separate your expenses from your company trading costs and fees.
· Make sure all the money generated from your company trading get deposit directly in the company business account.
· Make sure all the expenses generated from your company are paid from the same company business account.
· Use excel templates or any accounting management software such as QuickBooks to budget, plan your finance and organise your financial books every end of the month. This would also help you to prepare your annual reports.
Tips;
Avoid using personal bank accounts and business accounts simultaneously; this could be more costly in your accounting services. Use only one bank account if possible.
If you have a sole trader business or a company, pay yourself as director or employee. Try always to pay the same amount every month if possible.
Do not mix your expenses; separate your costs from your business expenses to have a good picture of your business costing you.
Any financial planning is welcome; do the minimum; budget, reconciliation and end of month closing. If possible, check your P&L, BL and TB at the end of every month.