Why You Should Keep Business & Personal Funds Separate | EP 277

Why You Should Keep Business & Personal Funds Separate

1. Even if you are a solo business, you need to separate yourself from the business 01:00
   • It makes everything more simple with finances and the actual structure of the business.
   • Essentially, you are the owner of the business and you are employed by the business.
2. Tax purposes 02:21
   • It’s just easier to file taxes when you keep your business and personal funds separate.
3. Business expenses 02:44
   • If you are depositing all of your business income into your personal accounts, it’s going to get really difficult to sort out the business expenses from your personal expenses.
4. Forecasting 06:13
   • If you keep your business and personal funds separate, you can accurately forecast your upcoming expenses.
   • This can tell you if you have the funds to hire employees, go to a conference, or purchase a new software.

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