The importance of keeping business and personal accounts separate
Have you recently started a new business? First of all, we congratulate you! A new business opens many opportunities for the ambitious entrepreneur. It also requires a great deal of oversight in a number of areas, including finances.
You are keeping your business and personal finances separate, right? It is an important, but often overlooked, aspect of starting a business. It’s so easy to “borrow” from your business when you know you are the sole owner and it’s all, in the end, your money. It’s not smart, however.
From a business planning perspective, it’s hard to see proper business cash flow — your revenue and expenses — when you have both personal and business funds in the same checking account. It also can complicate things when you talk to us about a loan or even work with your accountant to pay quarterly taxes or complete your tax returns.
Sure, you could keep a very detailed paper or electronic log or receipt system, but a specific business account will make your system much more efficient, easier to track and quickly available if an audit must be conducted or any questions arise.
We encourage you to take the time to review our business checking accounts and then contact us with any questions to find the one that works best for your new or existing needs. Good luck with your venture!