Starting as sole trader

cianlynchali

Hi. I recently became a sole trader.

All registered with revenue

Just a question on funding?

I am in the process of setting up a bussiness account. Just waiting on details to come bank and card to. arrive. Typical banks in Ireland

I have to pay for the bussiness insurance and safety statement from my personal account as other bank account isn't set up. Would they be classed as pre trading expenses?

Also when the bussiness account is up and running. Could I lodge money into this to pay for van insurance/fuel/other expenses till i get first payment in June or would I be best using personal account till payment comes. Hate to be taxed on the money again

Thanks

You don't have to use a business bank account Cian, but it does make life easier for filing a tax return. But yes your pre trading expenses of insurance, business name registration with CRO (if you do this), etc paid from your personal account will be allowed as deductible expenses. Just be sure to keep the receipts, and make a note you paid from your personal statement in case you can't remember why its not on your business statement this time next year.

Have a look at Revolut freelancer business account. It's free, very quick, card posted to you within days, and will be covered by deposit guarantee scheme from next month. Irish banks are a joke to deal with for small business.

When the business account is open, lodge a few quid in as a loan to get started, then pay yourself back when the business account balance allows it. You won't be taxed on this cash advance / loan to the business account.

Furze99

Good luck and whatever you do, keep on top of the paperwork. Figure out something that works for you and stick to it hell or high water. Too many put it on the long finger and then have to pay someone else to try and sort it all out.

Some book keeping software is good, once set up. I use QuickBooks but there are others. Invoices/ receipts created as they arise, payments entered as they come in. Once a month, I pay any outstanding invoices/ bills, send out statements, enter all bills & expenses, reconcile the bank account and send out statements. Have some schedule like that and it's easy enough to keep on top of.

cianlynchali

https://www.boards.ie/discussion/comment/119007242#Comment_119007242

Thanks very much. Doesn't matter if I paid for things for the time meaning with personal account til bussiness is up and running. Is that correct?

Correct. Provided its an expense for the business, there is no problem if it is paid from your personal account.

cianlynchali

https://www.boards.ie/discussion/comment/119007391#Comment_119007391

Think I will get a accountant. Wouldn't be the best of the laptop etc.

cianlynchali

https://www.boards.ie/discussion/comment/119007404#Comment_119007404

Thanks a million.

Furze99

https://www.boards.ie/discussion/comment/119007491#Comment_119007491

Even if you do get an accountant, get in the habit of documenting all income & expenditure. So you can hand it over, filed together by week or month. That way, you'll save yourself a heap of questions and a bigger bill to sort out the mess :)

I know a lad who is/was totally disorganised and it's cost him bigtime.