| Always separate business and personal transactions to avoid comingling funds. Open a business bank account and get a separate business credit card as soon as you decide to go through with your startup. This not only separates your accounts but also helps your business build its own credit rating to purchase assets and obtain funding that is not backed by your personal credit. Business Owners who comingle funds run the risk of tax deductions being disqualified thus increasing tax bills. The IRS already announced small business audits will increase by 50% in 2022, so let’s stay ready so we don’t have to get ready. |
Bookkeeping Tip