different accounts

[Sweetpea]

I just bought my grooming van, and just sent my dba to a local paper so I am in the process of getting started. It's a slow go because I saved up money to buy a van so I wouldn't have payments, now I'm paying for "all the rest" slowly. But I had a question about different accounts. I will have a personal checking, savings then a business account. How do I figure how much goes into each? Checking for everyday use and profit, savings for savings, business to buy things for the business...right? Do I need to put money aside to get ready for taxes, which account??

[hairdevil]

accounts

I'm sure your accountant will advise you on this. For me, its too much trouble and I don't have the time. I use one accountant. yep, 1. I write my business checks and personal checks out of one account to simplifiy things for ME. Now, if I'm audited it probably will be a pain in my tail to sort through all of it, but..I do well to balance one account, let alone 3 or 4.

[Mo-N-Me]

Agreed, your accountant should advise you.

I have business checking, and personal checking.

All money goes into business account, including taxes (this could go into savings so it's not spent) I just like the paper trail of paying my taxes directly from my biz account.

My business account should match my books, meaning deposits equal daily gross total. I pay myself out of my business account by funds transfer. That way I can seperate what I make, and what the business makes.

The biggest problem with being self employed, is proving income for anything that would require it. My paper trail shows exactly what I took, and what the business took.

[plushpuppy]

I have a business checking and a personal checking, It was worth it in the long run and then I have checks with my business name which is more professional when buying supplies for the business

[Fluffy Puppy]

I have a business checking and a personal savings. Then hubby has a checking and savings, which is also mine, but I don't want my name on it (long story).
I use the business checking for everything and the savings is for taxes. When it comes time for me to pay sales tax, I transfer it over to my checking and write the check out.
I do deposits at the end of the week and I take out my pay before I deposit. Then anything that I want to deposit would go into hubbys checking/savings.

It's alot easier for me to keep the biz and personal stuff seperate. I think that if I mixed all of our money into one account, I would have problems.

Talk to your accountant..mine advised me to keep everything seperate.

[Soap]

I just bought my grooming van, and just sent my dba to a local paper so I am in the process of getting started. It's a slow go because I saved up money to buy a van so I wouldn't have payments, now I'm paying for "all the rest" slowly. But I had a question about different accounts. I will have a personal checking, savings then a business account. How do I figure how much goes into each? Checking for everyday use and profit, savings for savings, business to buy things for the business...right? Do I need to put money aside to get ready for taxes, which account??

I think it SO COOL and very commendable that you saved up to start your business!! Good for YOU!!

I have a business checking account. It is linked to my ING business savings account so I can move money around. Make sure to keep all your business and personal finances seperate.

I have a new bank and they have this neat program where I pay $5/month, and this gives me online banking for businesses with a way to automatically upload my info to Quickbooks. I am still figuring the system out, but I think doing this will save me a lot of time. Good luck!

[misscatahoula]

I have a business account and a personal account. I find it easier for dealing with tax time and tracking what the business brings in vs. what's going out. If they weren't seperate It would get too confusing for me,lol.

[diamienono]

I have a business account. All checks are depositied into this account. I pay my business bills out of that account, things like 1/3 of all of my house bills is a business bill because I have my office in the house and it is 1/3 of my house. Big office for lots of storage. I just leave the rest (not much left right now cause I am not real busy yet) there for taxes.