More than one bank account

[aleksandra]

Hi ! My question is, how to keep the records if i have more than one business accounts? Thanks for all your help.

[Indizine]

can you give more detail about your question - ie keep records for what?

[aleksandra]

Do i need to keep P&L account for both of my bank accounts, or only the main one?

[James Smith]

Your questions suggests a major lack of understanding in what you are doing!

The point of bookkeeping is to record the transactions of the business. If they go through two bank accounts, then you would by definition need to record transactions going through both of them.

Not sure what method of bookkeeping you are adopting, but suggest you get some help from perhaps a friend who has their own business or if you know anyone who works in an accounts department they might be able to help with the basics.

Regards,

[Paul Norman]

My response to this is going to surprise no-one! I am going to tell you to go and see an accountant, and get them to explain to you what records you should keep.

Failing to keep accurate business records is a trap into which a great many businesses fall. And one which costs money to escape from. A small spend now, a good record keeping system, and a proper understanding of record keeping for your business is essential.

[aleksandra]

If I were an experienced accountant, I wouldn't have to ask the questions. Although my question wasn't the best formulated.
I know I have to keep evidence of every transaction I make, and it would be easy if I had only one bank account. But in my case, I have one UK business account and for example: I have one personal bank account in Spain, where my Spain cusomers pay, and PayPal for the UK customers. So I think how to organise the best. First to keep currency change under contol. Second if I have 100 items sold a day, how to make it simple. Also in the country I'm going to sell to is required to send customer receipt with every purchase. I would like to find easy method to organise it all.
Paul and James, thank You for your reply, I know it is easy to criticize someone, specially foreign and inexperienced, much harder is to give advice.

[James Smith]

Fair enough your question wasn't that well explained. I don't mean to be rude, but it does sound like you need some proper help and unfortunately you wont get that on a forum. This really is the best suggestion to you in the thread.

Generally what you should do is have accounts that are just business accounts. You shouldn't muddle business transactions through a private account in any case, so I would open a Spanish business account and bank your Spanish income there, and use your paypal for the UK income and incorporate both accounts into your bookkeeping.

Unfortunately when you get to accounting for Euros and sterling it will get complex and you will need some proper help in dealing with it.

At a very basic level keep it separate and let your accountant translate it. but that is not the full answer

Regards,

[aleksandra]

Thank You James! Unfortunately it is not possible to open business account over there, if your business is in UK, so I can only open personal account. But I've asked in Lloyds bank and they said is ok to have there personal account opened. I will collect all evidence needed and asap get advice from accountant. Thanks again.

[vanfinance]

Hi

I would totally agree with James here, we manage several bank accounts for our Ltd company and initially attempted in-house accounting soon to realise we needed a real accountant to work on our accounts for us. Creating and managing accounts for several bank accounts in different locations can be challenging and getting expert advise form an accountant is vital

Good luck

Will