I have just set up a limited company
Companies House registration is done and you are working out what a director actually has to do.
Founder & writer — writes from experience
The company is now a separate legal person. Its money is not your money until it is paid to you properly as salary, dividend or a repayment of what you put in.
The admin load is real but predictable: a company account, records that support the annual accounts, and clean director payments.
What to fix first
- 1
Open a company account in the company's name
Never run company income through a personal account.
- 2
Decide how you will pay yourself
Agree a salary and dividend approach with an accountant before drawing money ad hoc.
- 3
Reserve for corporation tax and PAYE
Set the percentage and automate the transfer.
Your seven-day plan
Day 1
Map company money
List the company bank account, subscriptions, customer receipts and any personal payments made for the company.
Day 2
Set up a records folder
Create a single secure place for sales invoices, purchase invoices, statements and director-payment evidence.
Day 3
List statutory dates
Record the company year end and the dates shown in your official correspondence; add them to a calendar.
Day 4
Document director transactions
Identify money put into or taken from the company and keep the reason and evidence with each item.
Day 5
Choose the bookkeeping cadence
Set a weekly transaction review and a monthly reconciliation date before activity grows.
Day 6
Build a first dashboard
Record bank cash, invoices due, bills due and the reserve you are building for tax.
Day 7
Prepare accountant questions
Ask about records, payroll, VAT awareness and the information needed before money is paid to directors.
Numbers and documents to collect
- Incorporation and company details
- They anchor the company identity and reporting dates.
- Company bank statements
- They support reconciliation and separation of company money.
- Director-transaction log
- It helps identify payments requiring accounting treatment.
The first client payment
A company receives a client payment into its company account, files the invoice, records the payment and leaves the money in the company while it lists upcoming company costs and tax reserves.
The director does not assume the balance is personal income. Any salary, dividend or repayment requires the right records and, where necessary, professional input.
Common mistakes and red flags
- Company receipts are still going to a personal account.
- You are withdrawing cash without recording its purpose.
- You do not know the company’s year end or key filing dates.
Get professional help now if…
Read these, in this order
When this path is not the right one
- Do not take money out as an undocumented 'drawing'. That creates a directors' loan problem and a tax charge later.
- Applying for credit in the first weeks of trading rarely succeeds and is not necessary.