It might be tempting to think you can just avoid all the charges banks levy on business accounts by simply running your business from your personal account. There are several reasons why that’s a bad idea:
- If you try to combine your personal and your business money all in one account, you are very quickly going to get into a hopeless mess trying to work out which money is for what, and who it belongs to.
- Even if you open two separate personal accounts, the bank’s small print states that you must not use it for business purposes, and it reserves the right to close the account if it discovers that you are.
- Limited companies are obliged to have a business account by law because they need to inform their bank of who the directors of the company are and file their accounts each year.
- You can’t put a name of your business on your personal bank account, only your own, which can look unprofessional either to your customers or your suppliers.
Balancing the challenges of running a business with the need to generate income can be one of the most difficult aspects of business ownership. In recent years, the ever shifting landscape of legislation and restrictions has made this even worse.
As a consequence many businesses are facing difficulties and the path to recovery may not be apparent. The following article looks at ten steps business owners can take to mitigate the possibility of needing to rescue their business, and what to do if their business needs rescuing.
Written by
Editorial Team
