Do you keep business finances separate from personal?
Separating finances is one of the most important bookkeeping habits you can build.
Maintaining a strict separation between business and personal finances is a common best practice for small business owners. From a legal and accounting perspective, “commingling” funds can sometimes complicate a business’s legal protections (such as the “corporate veil”). Vendors typically find that using dedicated accounts simplifies bookkeeping and provides clearer financial records in the event of an audit.
Benefits of separation
- Clearer financial records
- Easier tax preparation
- Better insight into true business performance
- Reduced risk of mistakes
How vendors usually separate finances
- Dedicated business bank account
- Business-only debit or credit card
- Owner draws instead of mixed spending
Even very small businesses benefit from this separation.
Stop Guessing. Start Growing.
Stop waiting until the end of the month to see if you made money. Get instant clarity on every sale, even without Wi-Fi.
Related resources
LEGAL NOTICE: Information on Vorbiz.net is for educational purposes and not a substitute for professional legal, tax, or financial advice. Read Full Disclaimer