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Co-mingling fundsQuestion As a home-based business owner, can I just use my personal checking account for my business?
Answer No. You should have a separate account for your business for numerous reasons.
If you're using a trade name for your business, you cannot deposit checks made out to the business into your personal account. Other reasons include: - Separate business income and expenses for tax purposes - Establish business credit accounts - Practice good accounting procedures - Enhance your professional image You will not be taken seriously as a business professional if you pay your business bills with a personal check. A lot of banks now offer small businesses a low or no fee checking account. Check with the bank where your personal account resides to see what business services they can offer.
Brain Trust contributor:
Co-Author of The 30 Second Commute
Related Categories: Accounting, Finance, Taxes, Business Start Up, Cash Managment, Home-Based Business, Management
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