Running your own business can be an exhilarating experience, and you have the independence to make all the decisions. Successful businesses can be incredibly rewarding, both personally and financially. But as many business owners soon learn, managing a successful enterprise involves more than caring for your customers. It would help if you also recognized that while your business's money is certainly essential, so are your personal finances.
The most critical step in managing your personal finances is to separate them from your business. That means opening separate bank accounts and credit cards for each entity. Having two different accounts ensures that you have a clear record of all of your transactions and expenses—both personal and business-related—saving you time when it comes to tax preparation, budgeting, and budget tracking. Plus, having separate accounts will help protect you if something goes wrong with the business.