Common Startup Mistake #5: Mixing Personal and Business Accounts

September 13 2018
Written by Phil Bedford

One of the first things you need to do when you start a small business is set up a business bank account.

Unfortunately, this is a critical step that’s often overlooked by many new and part-time professionals exploring their entrepreneurial side for the first time.

Usually, when you’re starting a new company, you’ll be investing a lot of your own money into it. You’ll also be using the profits that you earn from the business to pay for your personal bills, as well as the expenses of the organization.
So, why do you need to split everything up?

The simple answer is that separating your business and personal bank accounts can save you a lot of time, frustration, and headaches when it comes to dealing with things like accounting and taxing.

The Dangers of Mixing Personal and Business Bank Accounts

Perhaps you’re a new business owner or a freelancer starting to get more serious with their investments for the first time. In this situation, you may not know that opening a business account is standard practice for entrepreneurs.


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