2 bank accounts or 1 ???

Discussion in 'Business Operations' started by OrangeToys, Dec 28, 2010.

  1. OrangeToys

    OrangeToys LawnSite Bronze Member
    from SW MO
    Posts: 1,021

    Trying to decided what and how to do it? Is it better or worse and how do you how much to put where if you have 2 accounts?
    Posted via Mobile Device
     
  2. walker-talker

    walker-talker LawnSite Platinum Member
    from Midwest
    Posts: 4,771

    I am guessing you mean 1 account for both personal and biz or 2 accounts, one for each. I recommend 2 accounts, one for each. All money that comes in from biz goes to that account as well all expenses for biz comes out of that account. Get a seperate checkbook and debit card for business. All money that comes out of business account and goes into your pocket is categorized as a labor expense to yourself.
     
  3. two, keep them separate.
     
  4. OrangeToys

    OrangeToys LawnSite Bronze Member
    from SW MO
    Posts: 1,021

    Yes I'm talking about 1 personal and 1 biz
    Ok then how do you know the amount you put into the account
    Posted via Mobile Device
     
  5. walker-talker

    walker-talker LawnSite Platinum Member
    from Midwest
    Posts: 4,771

    Whatever it takes. You could loan your business say $2000. Transfer this from personal to business. It's a loan, so once the biz get going, you have to repay this back to personal. If you don't have that much, just keep track until you business makes enough to start an account, then set up a payment plan. Also, you need to determine how much your going to pay yourself. In the start, this might be cheap...could be nothing (if you have another income). I didn't make a dime in the first few years of my business. I have a good income and didnt need the money. I used all the money earned and put it back into the business until I had the equipment that I needed. It will make the transition going from part-time to full-time much easier.

    Whatever you do, just keep the two accounts TOTALLY SEPERATE.
     
  6. Jason Rose

    Jason Rose LawnSite Fanatic
    Posts: 5,858

    I like having 2 accounts. I went for years with just one though... Not a big deal to me, being solo, but at the end of the year I'd have to sift through a mountian of receipts to weed out all the personal stuff from the actual business stuff. What a pain in the ass! Finally got smart and seperated the business and personal accounts. I use the business debit card only for business stuff. I also use a seperate credit card for fuel for the business. Makes it a lot easier at the end of the year to know what I spent.

    Record keeping, I suck at...

    Matt (walker-talker) nice to see ya posting again!
     
  7. aird208

    aird208 LawnSite Member
    Posts: 109

    Separate accounts. If you formed your business as an LLC or Corp, it is necessary to have a separation in business and personal finances. If there is not a clear separation it opens your personal assets up (not just the bank account) if a liability claim is made against your business.
     
  8. walker-talker

    walker-talker LawnSite Platinum Member
    from Midwest
    Posts: 4,771

    I was never good at record keeping either until I loaded Quicken Home & Business on my computer, signed up for online banking at my local bank and then signed up for Quicken downloads. I never have to manually put in transactions again. Set up your income and expense categories and that's it. I have to pay $5 a month for this service. I just go in and download the transactions to my quicken, make adjustments if need be and thats it. At the end of the year I print out an income/expense report, check for simple errors and hand it over to my tax guy.

    Hey Jason, how's it going. Yeah, took a break from lawnsite for a few, maybe 6, years...lol. How did that deck work out? Somebody told me you had it for sale. How much profit did you make off it?...lol. I know I sold it for cheap, just got tired of looking at it.
     
  9. Jason Rose

    Jason Rose LawnSite Fanatic
    Posts: 5,858


    I ended up selling it, never used it either! Took a loss on it actually, sold it for $850. Given it's condition and that I had repainted it and replaced 2 of the idlers the guy got a hell of a deal. I just wasn't getting any bites on selling it so I took what I could get :dizzy: It just wasn't practical for me to swap decks when I had other machines I could discharge with that I could just hop on. And I couldn't really use it daily as I had lawns that had to be bagged as well as 4 foot gates to pass through... Worked good though, what little I actually used it.
     
  10. gasracer

    gasracer LawnSite Bronze Member
    Posts: 1,049

    I use 1 right now and I am very careful keeping deposits separate and all fuel,parts, receipts for business. I would like to have 2 next year.
     

Share This Page