5 small business accounting mistakes to avoid if you want to succeed

Mixing personal and business bank accounts: You pop to the shops for office stationery and end up buying a couple of bits for home whilst you are there.
Directors of small businesses are often guilty of mixing their personal finances and business accounts. If you have a limited company, it’s actually a legal requirement to have a separate account, but more than 25% of small businesses don’t have a separate business bank account and this can make it really difficult to track exactly how much money is coming in and out of the business and could result in taxable expenses being omitted or incorrectly categorized. It can also cause issues when applying for a business loan, as lenders will need a detailed and accurate view of the business accounts. If you are someone who blurs the boundaries between personal and business money, break the habit! Get a separate business bank account and you will save hours’ worth of headaches down the line.