Dear ,

Are you mixing business and personal income together? If so, you are destroying your own business. This practice affects your profitability in more ways than you can imagine.

 

Why is it wrong to mix business and personal income?

• You abuse business income easily
• It compromises your bookkeeping and accounting (you end up paying more to the IRS than you should)
• You can’t prove your profit margins which puts you at risk of not being able to be approved for business loans to grow your business
• You will struggle to grow from a start-up to a growing business.

 

What should you do to stop this damaging practice?

• Understand the difference between personal and business income
• Develop the discipline to stick to your plan
• Open separate business and personal accounts
• Start paying yourself a fixed salary – where you spend on personal activities.
• Buy all business supplies and pay contractors using the business account.

 

Above all, discipline is what you need to maintain all the above. Nevertheless, I want to give you an idea of how you can force yourself not to mix personal and business income: it is to start having bookkeeping and accounting.

 

These two means you must trace business expenses from time to time, and how can you do that without a business account? And, as soon as you have a business account, you start separating personal and business income.

 

Do you need bookkeeping or accounting services? Contact my team now to get started and build your business like a PRO!