No matter what industry you’re in, money is the great unifier among small business owners. Whether you’re spending it, trying to keep track of it, or (hopefully) making it, money is always on your mind. And there are a few things every business owner needs to do in order to manage your money the right way—but nothing’s more important than separating your business and personal finances.
Sure, you could keep your business and personal finances together. You couldalso stick your hand in the oven to pull out a tray of brownies without an oven mitt. But, as you know, there’s a big difference between “could” and “should.”
Why should you be concerned about keeping your business and personal finances separate? Legal liability, easy bookkeeping, and good financial hygiene—both for you and your business alike. Establishing a financial firewall between you and your business (even if your business is just you on your own!) is pivotal for your own protection and sanity come tax time. And, above all, seriously important for protecting your personal assets.