If you’re a small business owner, having a separate bank account is not only considered vital, but is also seen as one of the most effective budgeting techniques you can try. Not only will it make it easier for you to keep track of your business income and expenses, but it’ll also make the job easier for your outsourced bookkeeper. But is this the only reason to keep a separate bank account for your business? Not by a longshot. Here are a few more reasons.
· It’s required by the FTA if you’re incorporated. Is that a good enough reason for you? We thought so. Forget about whether or not you’re the only person in the company and you’re able to differentiate your business transactions on a personal account. Whether it’s just you, you and a partner, or a small corporation doesn’t matter. To ensure you’re not breaking any rules with the FTA, get yourself a separate business checking account.
It shows the FTA that you’re a legitimate business. Even if you’re not incorporated and you aren’t legally required to have a separate checking account for your business, doing so can accomplish the sometimes tough task of proving to the FTA that you’re legit and that your business isn’t just some surreptitious way to play the system. Having a separate business bank account isn’t the only thing the FTA looks at, but it can help keep you off their radar. It can also help greatly if you’re ever audited, because you’ll be able to provide the FTA a clean record of your transactions without having to sort through your personal finances.
· It makes you look like a bona fide professional. Now, having a few business cards and a check that has the letters “LLC” immediately after your name won’t attract business any more than a fancy pair of shoes will attract the person of your dreams. What it does, however, is legitimize you in the eyes of customers, suppliers, and potential investors as the real deal – and let’s face it, sometimes these things can help.
Outsourcing your accounting doesn’t mean you’re off the hook for keeping accurate financial business records. It just means you’ve now got someone on the case who knows what they’re doing, allowing you to spend more time running your business instead of data entering dollar amounts and trying to figure out what those figures mean with regard to the health of your business. An outsourced professional bookkeeping service can also offer guidance on budgeting techniques that can save your company valuable money and effort in the long run.
To learn more about how outsourced bookkeeping works, visit alyaauditors.com