Here are 3 reasons why keeping your personal and business finances separate will also help keep you and your business healthy.
- Finding, tracking, posting, filing, and reconciling your bank, credit card, and PayPal accounts – paper and electronic – becomes much more onerous and time-consuming. You’ll often have to chase down personal statements and dig through old purses for receipts to explain debits and credits. If you wait too long, the disappearing ink will confound your efforts even more. All of these things are guaranteed to make you feel overwhelmed.
- Accurate information about your expenses on a regular basis will help you make better business decisions, otherwise, you’re flying by the seat of your pants. When your business and personal finances are muddled, you won’t have a clear picture until tax time. Once a year is not the only time you need to make decisions. Inaccurate information can cause insecurity and indecision, detrimental to small business success.
- If you keep your finances separate, you’ll also find tax season much less stressful. Since less stress is good for your health, keeping personal and business systems separate also contributes to a healthy lifestyle. The impact of “tax stress” can be more than you might think.
If you are already suffering from these accounting ailments, get in touch. Untangling messes is one of my specialties.