Hi, I’m a sole trader self-employer. Do I really need to open a second bank account for my small business, or could I use my private bank account for both my private and my business payments? If so, how could I separate the in and out items in Quickfile? Tagging somehow? But the bank account balance is only one, which includes my private and business cash as well…
Any suggestion please?
You don’t have to have a separate bank account but it makes it easier to keep track of things and your bank may get funny if the pattern of transactions on your account looks like a business and they think you should be paying business banking fees rather than using a free-of-charge personal account.
In terms of how to represent it in QuickFile, you can just disregard the non-business transactions completely (simply don’t enter them in the first place, or delete them if they get imported), which means your QuickFile view of your bank balance won’t match the bank’s view. Or if you want to keep the balances in sync then enter all your transactions but tag anything that isn’t business-related as a transfer to or from drawings as appropriate.
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