By Carol H Cox
When there’s only you at the helm of your business, you essentially are the business. And it can be tempting to mix your personal funds with that of your business. If you’re starting off small, it might seem at first much easier to just to use your existing personal bank account to make business purchases and to make business deposits. Why bother with opening another bank account, right?
Well, after a few shipping expenses, supply purchases, website hosting fees, book purchases, website design fees, subscription fees, and so on, you’ll soon be spending lots of time keeping side records of what belongs to what.
Was that book you purchased last month a personal expenses or a business buy? What about that trip last week to the post office? Those Amazon purchases, were they all personal or some business, and which were which?
I think you understand what I’m getting at here. It is so much simpler to track your business financials if you start out with a clear dividing line between your personal affairs and your business affairs.
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