Do you ever use personal funds to cover business expenses (or vice versa) during tight times?

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.

Clear documentation is critical. Without it, bookkeeping becomes confusing and tax reporting can become inaccurate. Long-term, building a business cash reserve helps reduce the need to mix funds at all.