How Can I Keep My Personal and Business Finances Separate?

One of the first steps in managing small business finances is separating personal and business transactions. Mixing them can lead to confusion, missed tax deductions, and compliance issues.

To keep things organized:

• Open a separate business bank account

• Get a business credit card

• Pay yourself a salary or draw instead of using business funds for personal expenses

This not only simplifies bookkeeping but also protects you in case of an audit.