Best Discrimination Attorneys in Aurora, ON

How Can Small Business Owners Separate Business Accounts and Personal Accounts Every business starts as a sole proprietor or partnership before expanding to an office and corporation. When starting a business, you must learn administrative, financial, legal and taxation things on the go. One important thing every business owner should do from day 1 is separate personal and business accounts and finances. It can go a long way in saving you from legal and taxation troubles. Why Should Small Business Owners Separate Personal and Business Accounts? The work-life balance is good for personal and mental health, and the personal-business account balance is good for your financial health. At first, it may now look unnecessary to do double accounting. But business involves risk, and when things go south, you don’t want to sink with the ship but rather hop on to the lifeboat. That lifeboat is financial transparency on what is personal and what is business. If you maintain separate finances, you know how much your business earned and spent, helping you understand if the venture is profitable or burning cash. A separate business account makes you look professional when approaching investors, clients, and lenders, as they are interested in how your business finances.