We take a look at the major differences between personal and business finance

When it comes to finances in the modern age, there are two main kinds that we are concerned with on a day to day basis; business finance and personal finance. While they share many similarities, there are certain key differences that affect how things work in both areas. Today we are going to take a look at what makes each one different, and how you can become more familiar with what each one can offer you.

We'll start by taking a look at personal finance. This is the kind of finance that you are most likely already familiar with. For most people, personal finances tend to be quite hands off for the most part. If you have a job, your employer will either issue a cheque at the end of your payment period, or will lodge the money directly into your personal bank account. From there, your funds will be available to use however you deem fit.

You could opt to pay your personal bills, such as your mortgage, rent or any number of other things. You can set up direct debits or standing orders with your financial institution which will automatically pay bills whenever they are due. You can also monitor the status of your account online or over the phone with internet or telephone banking, as offered by all financial institutions these days.

When it comes to business finance however, things are slightly different. Companies need to manage their own finances to a much higher degree. They need to issue invoices to companies or individuals for payment, they need to set up purchase orders for new purchases and often they have multiple accounts from which money leaves and enters the company.

With so many different things to keep an eye on, business finance can be quite a tricky area. This is why so many companies hire in-house accountants, financial analysts and financial experts. There are a huge number of different resources available out there for businesses who want to improve or streamline their finances.

Most banks will have financial advisors who can help both businesses and personal account holders with their investments, savings and cashflow. Things like loans and overdrafts are available to both, however each come with very different terms and conditions.

If you would like to find out more about either your company's or your personal accounts, you can get in touch with your bank directly and they will be happy to help with any queries you may have.

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