Small business owners: keep your business finances separate from personalDo you know what's fairly typical of a small business operator? Personal transactions in their business banking accounts. I'm not saying it's right, just what I tend to see more often than not when we perform bookkeeping services for a client.
What's funny about those transactions is they are usually small amounts but are many in volume. I suppose the business owner figures it's all the same since he or she owns the business but it's not. For one, running personal transactions without regard to a spending limit starves the business of cash flow for expansion and weathering the slow times in the course of a year.
Create a budget for your business and stick to it. Place spending limits for draws out of your business account and try to limit yourself to one check a month for your personal household budget. Live under your means and help increase the odds that your business will be there for you tomorrow and into the future.
I am a CPA in San Antonio and serve individuals and small businesses in San Antonio and surrounding areas. We provide bookkeeping, payroll, taxes and more. Give us a call for a free initial visit.
Richard J. Garcia | 07/14/2010