Using multiple accounts in single file

[Maf. King]

On Wednesday, 12 July 2017 12:17:38 BST Matthew wrote:
> Hi Maf
> 
> That's just what I was looking for - thanks.
> 
> As a best practice, is it better to keep all accounts in one GC File, or
> to split across many?
> 
> e.g. should I have one File for wife's account, one for mine, one for
> joint etc?
> 
> Regards
> 
> Matt

Hi Matt,

I assume from your email address you are in the UK, as I am.

The honest answer is : it depends on your circumstances.

Let me expand on that helpful comment!

*One* of the purposes of using software such as GC is to allow you to generate 
reports and help you keep your tax position straight.

If you and your wife have simple tax affairs (ie all income is PAYE taxed etc) 
then you probably don't need to fill in a tax return or deal with anything more 
complicated than the annual p60 tax summary, in which case a combined GC 
probably saves work if you transfer money between each others & joint bank 
accounts.

However, I have separate file for me, the wife & the joint accounts - because 
we both have tax returns to worry about.  In general, separate files for each 
legal entity (person, company, partnership, sole trader, trust, estate (ie 
executor of a will) etc) is a good idea to keep clearly defined lines and help 
avoid mis-categorisation, but it does mean a little more work.

I'm not an accountant or lawyer, if you have "complications", it would be wise 
to have a quick chat with a professional about this.

0.02
Maf.