Q & A and Tips on Accounting, Taxes and Personal Finance.

Separate Business Bank Accounts and Credit Cards

February 9, 2016 | By More

If you run a small business, it may seem simplier to use one bank account for all your money – personal and business. As Marcia Van Norman CPA of Round Rock, Texas explains, mixing business and personal funds is not the ideal approach.

bankstatementSeparate Business Bank Accounts and Credit Cards

Marcia: While it is technically not required, having a separate bank account and credit card for your small business will making bookkeeping significantly less time consuming for you (or your bookkeeper, if you have one).

Many small business owners tend to mix their personal expenses in with their business expenses (regardless of whether or not their small business is incorporated). This might make it a nightmare to reconcile their business expenses and get their books in order. If a bookkeeper is used, this will certainly cause them to spend more time, and time is money.

Keeping business spending separated from any personal expenses might even save you money if you have a bookkeeper, as they will spend less time doing your books.

Contributed by Marcia Van Norman – CPA
Marcia Van Norman CPA LLC is located in Round Rock, Texas. For more information or to contact Marcia Van Norman, visit http://www.VanNormanCPA.com

Article information should not be used exclusively to make legal, financial or tax decisions. Because laws and rules can change frequently, topics may not always be updated to reflect these changes or may not apply to your unique situation. It’s prudent to seek out the advice of a professional for your specific needs.

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Category: Business Bookkeeping

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