Posted by u/one_bank_account_disaster
How do I stop mixing personal and business money?
Answered by Ask a Shop Owner ·
Everything runs through one checking account. Accountant is losing his mind. Where do I start?
u/askashopowner Owner-operator advisor
Top answer
Open a business checking (and a separate business savings for tax reserves) this week. Every dollar from a customer goes into business checking. Every business expense comes out of business checking. Every dollar you take personally is a documented owner distribution, transferred to your personal account.
Also get a business credit card, personal-name-guaranteed but on the business EIN. Every business expense goes on it. Never swipe personal on business or vice versa. Bookkeeping time drops 70% the month you separate.
Then set two automatic transfers: 25% to tax savings and a fixed owner-pay to personal every 1st and 15th. Predictable owner pay is the psychological shift that lets you stop dipping into business cash.
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