The Benefits of Separating Your Personal and Business Finances

Now that you’ve taken the big to start a business venture, it’s time to ensure your business is headed in the right direction. One of the best practices successful business owners live by is the separation of personal and business finances.

Separating personal and business finances is crucial to the success and growth of your business. In this blog, discover why successful business owners adhere to this.

Easily monitor and track business finances

Having a separate business account will give a clear picture of what funds are coming in and out of your business. Additionally, your monthly accounting task will be simplified with all business transactions funneled into one business account.

Check out CCCU’s Basic Bookkeeping article for more information.

Saves you time and headaches during tax season

Using a separate business checking account draws a clear line between personal and business expenditures meaning your business will be less likely to make mistakes when filing taxes.

The Internal Revenue Service has a very strict rule against the commingling of funds and underreporting. This can help you avoid a fine from the IRS.

Obtain business loans

Building a business credit history is vital to the growth of the business. Business credit will determine your borrowing power. This enables you to access working capital to expand, purchase inventory, invest in office equipment, etc. While most banks still look at your personal credit score, lenders would still want to see that your business is in good standing.

Read the article about Funds to Build Your Business for more tips.

Running your own business will require a lot of work, time and money but the results are truly rewarding once you start seeing the results. At Clark County Credit Union, we provide the necessary financial tools to get your business up and running. Check out our business deposit accounts or call us at 702-228-2228 (option 3) to speak to one of our commercial loan team members.