importance of establishing bank accounts, financial control and record keeping

Question 1

separate entity

Answer 1

accounting principal states that we should always record the transactions of the business and its owner separately

Question 2

importance of having separate bank accounts

Answer 2

Easier to monitor the financial performance
Easier to calculate business expenses
Less time consuming and costly to prepare tax returns

Question 3

importance of having good financial controls

Answer 3

Monitor business health
Meet tax and superannation obligations
Manage cash flow
Plan for success