As previously stated, getting personal transactions entangled with that of the business transaction is something most farmers and agripreneurs do – and it may come easy; however, this poses risk to the business, leading to lost opportunities for business growth.
For agribusiness that is predominantly used for farming traditionally, this is innate.
With evidence of the business potential in agribusiness, it is imperative that we treat all agribusinesses with utmost importance and understand all the aspects that contribute significantly to the bottom line.
Separating personal accounts from business accounts is one crucial aspect of every agribusiness.
Transacting separately will streamline cash flow and make record-keeping much more efficient and readily available for financial statements, and tax submission as well as protect you from personal liability.
Now that we have reiterated the importance of separating personal transactions from that of the business, I would like to elaborate further by stating a few tips on how to get started.
It s never too late to start doing the right thing that will benefit you and your business significantly in the long run.
So, here is how to separate the personal accounts from that of the business:
Select your business type and register the agribusiness accordingly
Open a business account with its debit banking card
Compile a budget for your business and monitor the budget monthly
Ensure all your business transactions are recorded accordingly
Create a file specifically for your business receipts and all the farming financial supporting documents
Ensure everyone who may handle the business accounts – be it your family or partner – understands how you transact your business activities.
As a business is a separate entity, ensure it pays you a salary to avoid taking funds from the business when and how you please.
Finally, it is imperative that you understand what is deemed as business expenses. For assistance and support, get in contact with a Financial Professional.
Let us operate farming activities to maximise the agribusiness potential – and most importantly, let us farm for profit.