I am self employed and run two small businesses, one doing bookkeeping during the week and one doing audio/sound engineering and the odd bit of audio equipment hire at the weekends. I started the audio business in december 2012 and had a small set of accounts for HMRC self-assessment for the end of 2012-2013 tax year with only a small income. Since April 2013, my main source of income has been from the bookkeeping business. I have two bank accounts, a business income and personal. Both sources of income from the two businesses pay into the business bank account.
Both businesses are seperate and obviously some expenses that I claim for one business, would not relate to the other. In terms of preparing for my 2013-14 self-assessment, if I was drawing up accounts for two separate businesses, how would I account for the bank account? (for example reconciling, and in the trial balance and balance sheet), or would I just draw up one set of accounts for myself and include all income and expenses across the two businesses?
The other thing I thought about (if two sets of accounts) was to account for the bank in one business, and not for the other?
I hope this is not too confusing as I am a bit stuck on this matter!
As you say, the bookkeeping is the main income so in terms of your tax return, enter the balance sheet on those supplementary pages. Enter the audio/sound engineering P&L on another set of pages.
