Managing money when a limited company
Can anyone offer any advice on managing money when running a limited company?
I've made up my mind that it's the way forward for me but am unsure about the logistics of paying myself too little to actually live on month to month in advance of declared dividends.
Do people use money already saved or interest free overdrafts to cope with the shortfall etc? Any practical tips or advice from people running companies would be much appreciated.
- Hi again!
How is it all going? Decided on company structure yet?
My advice really is get an accountant! Work out how much you need to live on, cut out all the frilly bits and focus on work for a bit 🙂
Once you have realistically worked out how much you need and what the business is bringing in then chat to the accountant about how you can achieve this.
If you have no savings then paying a higher amount in PAYE and taking a little tax hit there is possibly better than paying monthly divi's. I would take out a loan or release of house equity (if this is an option) as the last possible course of action as that is just money in someone else's pocket. If you do go for a loan then make sure you shop around for not only low APR but also no early redemption penalties.
- Yes I've worked out the company structure and am pretty close to chosing my accountant.
I just didn't know if anyone had any practical money managing tips they could pass on from first-hand experience running a ltd company.
Thanks again MickyFinn!
Drop me a PM if you need any help with your admin or bookkeeping.
Business Administration for CompaniesStewart Setter Director Virtual Ac