Is a withdrawal from a business card a normal way to take money out a company?

[JamesDonkey]

Is withdrawal cash, via ATM, from a business bank card a normal way to take money out a company, off a bussiness account? In terms of accounting, perhaps taxes too.

Or should I necessarily send money to my personal bank account and from there use it?

In particular, with a Transferwise business card.

 

[JamesDonkey]

No body knows ???

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[Marzio]

It's not that nobody knows, it's that if you live in a high tax country you have to justify business expenses so you can't simply withdraw money from ATM and pay for hookers.

 

[JamesDonkey]

Not only did I not mention "high tax country", I have stated - "take money OUT a company, OFF a bussiness account" Which implies, for personal use. And from which, I know, I'll have to pay taxes.

My question is - HOW do I take out money from my company *properly*? What are the *proper* ways?

 

[JamesDonkey]

Or how do I take out money as the salary paid to myself? Is withdrawing via ATM from a business bank account or card a normal way?

Or is it only by sending money to my personal bank account, from my business account?

 

[username84447]

It's really up to you. Withdrawing straight from a card or using a card for personal purposes is fine, but it can add more work on your accounting end as you'll need to mark each of these individual transactions as personal use for your book keeping. Moving a bulk sum to your personal account and then spending from there would solve this as it would only be one larger transaction a week.

Also depends how you want to take the money from the company. Dividends, salary, loan etc. So the 'proper' way would be different depending on your individual circumstances and would be best just asking your accountant.

 

[JamesDonkey]

Moving a bulk sum to your personal account and then spending from there would solve this as it would only be one larger transaction a week.

That's it, thx. Solved!

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But when I send money to my personal bank account, won't I **have to** mark them, maybe by adding a note, as something related to revenue generated from my business? I've heard something similar.

Or is it only, and if my bank where I have a personal account, want to look closer at a certain transaction(s), only then will I have to explain that those are from my business? Otherwise I'd simply send money as normal transactions, without any notes attached to them?

Also depends how you want to take the money from the company. Dividends, salary, loan etc. So the 'proper' way would be different depending on your individual circumstances and would be best just asking your accountant.

But how else, if not by sending it to my personal bank account, could I withdraw money as dividents, salary, loan...? ATM would be another way. But apart from these 2, what else?

 

[Simon4466]

Why do you overthink paying yourself a salary that much? Just make sure to write down the hours you make (if required by law etc.) and pay yourself on a weekly/monthly basis the amount due. Of course, if you own the company, you can (in theory, depending on your country) pay for personal things by e.g. getting money out of an ATM, as long as this is clearly marked and accounted for. And if you were to pay yourself a salary, what would be the additional hurt of adding a comment saying: 'Salary of month: [month]'?

It makes little sense to turn your accounting into a nightmare to deal with. Every other company just sends a paycheck every [x] period, and there is a good reason to do so.

 

[JamesDonkey]

what would be the additional hurt of adding a comment saying: 'Salary of month: [month]'?

More scrutiny, otherwise avoidable.
The bank might begin to ask me questions whether or not the taxes have been payed off a transaction with a note which says "salary".

And If I live in a country A, and sometimes(!) send my salary to my personal account in country B, the bank in B might want me to pay taxes in country B too, or at least it might send information to the tax revenue agency of B, and thus I'd have to deal with it.

In any case, why reveal unnecessary information? No reason.

 

[Simon4466]

Because I've never done it before, you id@@@t.

No need to be rude.

The bank might begin to ask me questions whether or not the taxes have been payed off a transaction with a note which says "salary".

Yes, but they also will do so if you add any other comment is on there. Why bother having it in your personal account then? Most countries' tax authorities are simply able to scan your personal balance anyways.

And If I live in a country A, and sometimes(!) send my salary to my personal account in country B, the bank in B might want me to pay taxes in country B too, or at least it might send information to the tax revenue agency of B, and thus I'd have to deal with it.

Weird. Do you mean you have to pay VAT taxes on the money earned in country B? If you only have an account there, and don't live there / don't have your business dealings there, I do not see a reason why you would have to pay taxes in country B as well, as you would already be doing so in country A where you live.