Ask Maxi · Bookkeeping
How do I separate my business and personal money?
Mixing business and personal money is the most common reason books take forever and returns cost more. Untangling it is easier than it sounds.
- Open a business checking account. Many are free. Use it only for business income and expenses.
- Get a business card, or dedicate one personal card to business only.
- Pay yourself on purpose. Move a set amount from business to personal on a schedule (every two weeks or once a month) instead of swiping the business card for groceries.
- When you slip, label it. Paid a business bill personally? Note it and reimburse yourself from the business account. Personal charge on the business card? Pay it back the same way.
- Point every client payment at the business account: Zelle, Venmo business, Stripe, checks.
What you get: cleaner books, faster bookkeeping, a stronger position if the IRS ever asks questions, and a much clearer picture of whether the business is actually making money.
If you are an LLC or corporation, keeping money separate also helps protect the liability shield you formed it for.
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