Separating Business and Personal Finance | Business Security and ...

Posted on01 September 2011. Tags: bank accounts, business, money, Personal finance, Separating Business

In a previous article, we offer tips for successfully managing his family business. There he explained the importance of treating his family and employees in the same way, to keep their family problems outside the business, always be clear and concise orders and to always be looking for someone who can effectively replace for when you retire. One last point we address in this article is so important that we have decided to give emphasis on this opportunity: NEVER mix of personal accounts with your business.

Maintaining this balance sounds easier said than done. The first step is to physically separate accounts. You must have your bank accounts and personal credit card accounts completely separate from business. Be sure to use the credit card business to pay their inputs, goods and other bills. Note that going out to eat with his family, going to movies or pay cable service in your home are your business expenses. Learn to differentiate well between personal and business expenses in order to avoid headaches when doing accounts to pay their taxes.

If you are an employee of your business, assign a salary that is deposited into your personal account and use this money to cover their expenses. Avoid as much as possible to use money from your account or personal savings to cover business expenses. It is a reality for some small business owners having to use personal funds to make payments of the business when sales are down, if there are problems with payment arrears or some unexpected disaster, affecting sales. If this is the case, try to ?pay? the money as soon as possible and treat it as if your business has received a loan from a third party.

In any situation, seek the advice of a professional accountant to establish a clear accounting system and establish clear rules for paying bills, buying supplies and salaries. If there are more family members or business partners who are employees, set clear rules on how to proceed if there are such cases.

This is a problem that many entrepreneurs have and some fail to resolve. As stated earlier, the secret lies in know how to separate accounts and have the discipline and order necessary to prevent such mixing and cause you real headaches. Never lose focus of always having a detailed account and see your business grow with a clear and healthy accounts.

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