This article is the second in a month-long series on taking care of your finances as self-care. Specifically, I’m focusing on what you can do with your money to take care of yourself and improve your business in 2019. You can read the whole series by clicking here.
If you’re running a small business, and especially if you’re a solopreneur, chances are your business finances are very intertwined with your personal accounts. When you’re first starting out, it might seem sensible to not open the extra account. But if you want to tend to your business finances, separating them from your personal money is the first step you need to take. Here’s why:
If your business and personal finances are mixed together, any financial information you need about your business is going to get murky, fast. From this unclear standpoint, it can be very difficult to tell whether your business is supporting itself or not. It’s also hard to make decisions about your business spending when your personal spending is mixed in. Separating the two allows you to clearly see where your money is going in your business. Clear financial information is a must for tending to your business finances. It’s what will help you run a more profitable business!
Separating your accounts also makes things much easier at tax time, when you need that information anyway. Having your accounts separated and that information readily available means you’re less likely to give up and overpay on your taxes. This means more profit for you.
Here’s your step for the week: go ahead and open a business bank account, and transfer your money. As an added bonus, you can download the first 5 chapters of Profit First and use my Profit First Calculator to calculate your amounts for each account. If you’re looking for some support or encouragement, check out my services packages and book a discovery call with me.
I hope this gives you some of the motivation you need to get a jump on your business finances. Happy account-opening!
Image Sources: Harshal Desai,