No. of Recommendations: 1
And banking: What do people do for banking? Although from a tax point of view, the company and myself would be one and the same; I think it would be good to have another account in the name of the company. Easier accounting, could accept checks payable to the company name, etc.
Low cost cashing of sterling cheques / bank drafts would be a bonus.
Has anyone used a credit union for this? Or does anyone have any "conventional" bank recommendations that don't stiff small businesses with their charges?


My DH is self-employed, and to basically make it easier for my bookkeeping, I got him a separate checking account at the credit union. It's actually a joint account, but I only had his name printed on the checks. That helps me know that it's the business checkbook instead of the personal checkbook at a glance, yet I'm still able to write all his checks and do all the financial stuff. I also got him a separate credit card for his business, and again, we got that as a joint card because I do things like pick up supplies for him at Home Depot or buy office supplies at Staples. I go to great lengths to keep everything separate, but it's mostly because it makes my record keeping so much easier and cleaner especially at tax time.

I also use Quicken to track our finances, but I didn't bother to create a separate file for him. Since he has a business checkbook and a business credit card, I simply track those accounts. And that makes it easier when I draw his 'pay' every two weeks because I just transfer from the business account to our personal account, and it's all in the same file.

Another thing I find very useful is that I created a category in Quicken for his business, and I have a bunch of classes under that for everything. I actually took all the lines from the Schedule C for expenses and created a class for each one. That way, at the end of the year, I just run a report on that category with all the classes, and just transfer the data onto the right lines on the Schedule C. Works like a charm. I also have separate classes for each of the subs or other businesses that he may work with, and I use that to generate the 1099's at the end of the year.

If you have MS Money, I imagine it would work the same, but I find by doing a little organizing up front, it really minimizes the workload come tax time.
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