When you start your own business it’s very easy to mix your business and personal finances together.
Growing a new business is your dream. However, bills don’t stop piling up in your personal life while you are building your dream. It is tempting to view your business bank account as all your funds. You might think that using your personal credit card for a business expense won’t be a problem. It is.
Having your business and personal transactions mixed can create confusion and give inaccurate figures as to the health of your business.
This could prove problematic should you wish to seek finance or be in the position of selling your business at a future date.
Whether you have an established business or just starting out with your brand-new venture, it is essential for you to keep your business and personal finances separate before it gets too complicated. If you have your business and personal finances mixed up you may accidentally include something that you shouldn’t in your BAS/Tax reporting.
It is important to carefully track all your business expenses separately from your personal. Although, they both may appear to be the same to you, especially if you are a sole trader, keeping your business and personal finances separate can save you a lot of hassle and time when it comes to managing your money.
One of the simplest things you can do to help keep your business and personal finances separate, is to have a dedicated bank account and credit card (if needed) for your business.
Get in touch with us today to enquire about how we can help you keep your bookkeeping and payroll accurate and easy to manage.