Keeping business and personal separate is essential, not only because it helps you keep better records, but because it also reduces your personal risk as a small business owner.

Picture this: It’s 6 months from now and a client of yours is unhappy with your service, so they file a complaint. You brush it off – no refunds, sorry. They then file a lawsuit, and the next thing you know, you’re turning over personal bank details to 3rd parties because you have all of your business transactions co-mingled inside your personal bank account. Yikes. You’re awake at night wondering if someone can seize some of your family’s money. Double yikes.

Sorry, breathe. That was worst case.

A more likely scenario, if you mix business and personal, is that you avoid trouble with the law because you’re an honest business owner, but that you get to tax time and you are crazy stressed. You’ve printed out all of your bank statements for the year and they’re multiple pages because, hello, we are in the age of consumerism 🤑 You sit down with lots and lots of pages and a highlighter so that you can sift through and try to remember which Google purchase was for work and which was for your family photo storage. Sounding familiar? I’m thinking this is happening over a period of many hours, and a few glasses of wine…and maybe some bad tv.

I recommend we skip both of these scenarios and open a new bank account from the start! Or now! Better late than never 😉 And luckily, gone are the days where you have to physically walk into a bank to open an account. Consider opening an online account with my favorite (and the bank I use), Relay Financial. It’s super, duper easy. Literally 10 minutes to sign up. No fees, no minimums, nothing, nada.

And if you’re bank shopping, remember to ask any potential banks these questions….

1. Are there any recurring fees?
2. Is there a minimum amount I have to have in the account?
3. Does this bank integrate with Quickbooks Online and/or other software?
4. Can I add additional users (like my bookkeeper)?
5. Can I open a business savings account in the future? Will I earn interest?
6. Will my money be FDIC insured?

Opening a business bank account can be simple these days. It will help keep your personal assets separate from your business activities, and it will allow you to have one, central place for business expenses and income, which will then lead to easier and more accurate recordkeeping. Put this task at the top of your to-do list.

I have other favorite banks – DM me and I’ll tell you more! Or – schedule a single bookkeeping session today and we can work through this together.

Talk soon,

Jen