Getting into Good Habits early

[JoeT]

Hey
I like to say I’m getting the hangs off things. Yesterday whilst working I got 2 drinks using the business debit card and have put these transactions as drawings on QuickFile.

Is there any benefit to adding every single transaction manually every evening other than keeping on top of everything

Also

I know as a sole trader I am one legal entity so is there any point in using the business bank account for things purchased whilst working or should I just use my personal account?

Thanks

[rhc]

@JoeT

Is there any benefit to adding every single transaction manually every evening other than keeping on top of everything

That is exactly the main reason. But you can also do it once a week or once a month …

@JoeT

using the business bank account for things purchased whilst working or should I just use my personal account?

You can use one (your private) bank account but to keep things separate and simple you should use 2 separate accounts. This can be two private bank accounts, as long as your bank allows this. If you have to many transactions per month it can be that they try to force you for a business bank account. It is also worth to know that business bank accounts come with additional features.

Hope this helps

[JohnJ]

Or now that it doesn’t take four days to transfer money between accounts, open a second account with a different bank.

It’s definitely wise to see the business as separate from yourself as it helps with budgeting for both. You could even record any money you have to put into the business in the same way as a directors loan if it helps with analysing profitability.