Personal and Business Transactions within a bank account

Accounting
1

Hello, I was just wondering the best way to divide personal and business transactions within a bank account as I do not need the personal transactions to be tagged but if they are not tagged and say deleted then it will throw off my account balance to an incorrect figure, also I need a way of specifying that the money used for these personal transactions is not the businesses money because I if I place the personal transactions within specified nominal accounts then they will be treated by HMRC as business expenses and id prefer not to pay tax on my personal transactions as I am sure you can understand!.

Thanks in advanced for all your help,

T.Hawkins

2

If you are a sole trader the best way to handle these transactions is to tag them as transfers to the proprietor drawings account. You can also delete them, but as you correctly pointed out this will throw out your bank balance. Long term I would definitely recommend opening a dedicated business bank account, it will drastically simplify your bookkeeping.