Do you maintain separate business and personal bank accounts?
Here are 4 reasons why you should!
1. All business related income needs to be declared at tax time. Save yourself the time and headache of having to separate out personal vs. business at year end.
2. Don’t miss out on deductions! Messy records could = missed deductions. Save yourself the time and headache of having to separate out personal vs. business at tax time.
3. Clear records. Whether it be to monitor performance or provide documentation for an audit, save yourself the headache of having to separate out personal vs. business at any time.
4. Professionalism. Regardless of the type of business you have, how many hours you work, how many customers/clients you have, or where you work from, OWN IT! Your customers/clients/colleagues will take your business more seriously if transactions are coming from or being made payable to your business rather than an individual.
*Please note that separate accounts won’t provide all of your record keeping solutions, but it’s a great place to start! And it will definitely save you the time and headache of having to separate out personal vs. business later!