Bank accounts

We always recommend that partnership opens a bank account in the name of the business. This separates business transactions from private ones and means that we as accountants, the Inland Revenue and Customs & Excise need concern ourselves only with the business records rather than private matters too. Authority to sign cheques will usually be set down in the partnership agreement. From the earliest stage it is worthwhile putting in place internal controls over the firm’s assets and funds.

It should always be borne in mind that, unless the firm is an LLP, the partners are jointly and severally liable for the firm’s debts. A third party is entitled to assume that anyone held out as a partner is empowered to bind the partners in a contract signed on behalf of the firm.