July 18
Business Best Practices
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Businesses start from an idea. Maybe you started out by helping friends walk through something you’re awesome at. Word spread and soon you were helping others, thinking maybe this could be a business.
As you explore that idea and start to put things into place you’re probably not thinking about all the back end things that make you a business, you’re thinking about getting the word out and serving others.
You get down the road and realize your records are a mess. You’ve spent personal money here and there, and may not have kept all your receipts.
Now’s the time, right now, today to get a separate checking account for your business and here’s why.
No more digging through your receipts or bank statements trying to remember if that Target purchase was personal or business. When you have a separate account for your business, where you only pay for the expenses of your business, you have records for your business.
You know exactly how much you’re spending to run your business and you have it tracked. You’ve simplified tax time and have records in case you’re audited (but still keep those receipts, bank statements alone are not enough).
Having cleaner records is the practical reason to get a separate checking account, but it does something for your mindset too. All of the sudden, you are no longer a random person helping her friends solve a problem. You are a business, it says so right there on your checks (which are legal documents).
There’s a mindset shift from ‘this is just a fun hobby and who cares if I make money’ to ‘this is a real business and I’m going to be profitable’. What a difference a simple bank account can accomplish!
Go to your bank today and open up a separate account. If you’ve already gone through the process of registering your business you can use those documents to set up an official business checking account.
If you haven’t done that yet, still go get a separate account. It’s okay if it's a personal account type, it just has to be a separate account from your accounts used for personal transactions.
Separate your business and personal accounts today!
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