Finance Function & CFO Advisory
Family and company money, kept apart
“Money moves between the family and the company and nobody can say what it means.”What owners tell us
The situation
Signs you are facing this
- Personal and business expenses run through the same accounts
- Loans to and from directors have no agreed terms or records
- Several family members approve payments with no single owner of the numbers
- A lender or investor asks for clean accounts and the books need rework first
The situation
Family and company money, kept apart
Driver 1
No written policy for owner withdrawals
Each payment is decided case by case, so patterns are invisible.
Driver 2
Records built for one entity serve several
Related businesses share accounts, staff and costs without clear allocation.
Driver 3
Dividends, salary and loans blur together
Each has a different tax and legal treatment, but they are recorded the same way.
- 1
Diagnose
Separate and document the flows
Trace owner and related-party money, then record each flow in the right account.
- 2
Design
Agree simple rules
A policy for salary, dividends, loans and expense claims that the family signs.
- 3
Embed
Set reporting everyone trusts
A monthly pack the board, family and bank can all read.
- Related-party and owner flow map
- Owner withdrawal and dividend policy
- Cleaned and reconciled accounts
- Monthly board and family reporting pack
Start this week
- Open and use separate accounts for company and personal spending
- Record every director loan with terms
- Agree a written withdrawal and dividend policy
- Reconcile related-party balances monthly
Common questions
Why does separating family and company finances matter?
Clear records support tax positions, bank credit and any future investment or succession. Mixed accounts make profit hard to read and invite adjustments and disputes.
How do salary, dividends and loans differ?
Salary is an expense under payroll rules, dividends are paid from profit after tax and carry withholding, and a loan needs recorded terms. Each should be treated and documented as its own flow.
Related situations
- “We are thinking of selling, merging or bringing in a partner.”Selling, merging or bringing in a partner
- “Head office wants numbers on its timetable and in its format.”Reporting to a foreign parent or investor
- “We need help with tax, NFRS or a complex financial matter.”Help with tax, NFRS or a complex financial matter