Hey yall!!!
So today were gonna talk a little about banking. I meet lots of small business owners who miss one major step in setting up their business. They do not separate the business accounts from their personal accounts.
I can understand, it’s not the easiest things to do at times. However, failure to do it can be costly in the long term.
There are several benefits to separating your business and personal account. The number one and most important reason is organization. You are well on your way to having an organized financial system if your accounts are separated. To be clear when I say accounts I’m referring to checking accounts, savings accounts and credit cards.
It saves you a ton of time and headache when you only have to refer to one place to pull all your business financial transactions. Separating your accounts can also make it easier to see if your business is profitable or not. You will be able to clearly see what income is coming in and what expenses are going out.
Another important reason to separate your accounts is to ensure your personal funds are protected under your LLC. Forming an LLC offers certain legal benefits, one of which is it protects your personal assets from claims filed against your business. If your personal and business accounts are co-mingled, you will have a harder time proving what is solely related to your business in the event you need to.
Having a bank account with your business name on it also helps your business to look more official. This can go a long way in boosting consumer confidence in your brand. It can also be helpful when seeking business lines of credit.
If you need help separating your accounts, please contact us for a free consultation.
Rosemond Financial 