Limited company banking question

KTRIC

I just set up a limited company and it will be managed for me by a management company. I've set up a business bank account with AIB and I just have a couple of questions regarding what I can do with my account.

I realise I have to pay myself a "salary" every month and withdraw the net amount from my business account. so...

1. What happens to the remaining balance of the account after tax, prsi etc ?
2. Can I transfer money into that account that hasn't come from another company or that has any invoice for ?
3. Can I withdraw money from the account for my own use or does everything have to be accounted for ?


Thanks

K

Shiva

KTRIC wrote:

1. What happens to the remaining balance of the account after tax, prsi etc ?

Thats what you use to pay your overheads, expenses, salary etc. Anything left is profit

KTRIC wrote:

2. Can I transfer money into that account that hasn't come from another company or that has any invoice for ?

I'm open to correction on this, but I think you can lodge your own money back into the company as long as you document it properly. It could be recorded as a loan which the company will pay back to you, or as investment, for which your company could re-imburse you in some way. You should probably ask your accountant though.

KTRIC wrote:

3. Can I withdraw money from the account for my own use or does everything have to be accounted for ?

No, you have to account for everything going in and out of the company funds in your book keeping.


But really...you should be asking your accountant or a financial advisor these questions.
I'm neither, and I make no claims as to the accuracy of the above

stepbar

KTRIC wrote:

I just set up a limited company and it will be managed for me by a management company. I've set up a business bank account with AIB and I just have a couple of questions regarding what I can do with my account.

I realise I have to pay myself a "salary" every month and withdraw the net amount from my business account. so...

1. What happens to the remaining balance of the account after tax, prsi etc ?

It stays in the business unless you choose to take it out in the form of wages or general expenses. Remember a Ltd co is a seperate legal entity.

2. Can I transfer money into that account that hasn't come from another company or that has any invoice for ?

You must be able to provide info re: the source of the money.

3. Can I withdraw money from the account for my own use or does everything have to be accounted for ?

Everything needs to be accounted for. Thats why is best to have a company credit card / laser card for expenses e.g Business Lunches etc. Produces a paper trail.Remember the tax man can come and audit your accounts. He will expect to see receipts etc

Thanks

K

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KTRIC

Thanks for the answers guys , it sort of points me in the right direction