I’ve built my career helping people ensure their finances can withstand life’s ups and downs. But still, I often see people who neglect to protect their personal finances from their business.
Geoff Williams of U.S. News gives us some great tips for keeping business and personal finances separate in his piece, How to Keep Your Business from Destroying Your Finances.
Open a Business Account
Or at least a separate personal account for your business. If you have multiple businesses or ideas, consider opening a separate account for each, which can also help you secure partners or investors in the future. But most importantly, separate accounts will provide precise documentation of the success and profitability of your business.
Hire Professional Help
Hiring a bookkeeper to maintain financial records and file income taxes free up the time you need to actually run your business. Plus, bookkeepers and accountants keep records in order so you have a clear vision of how your company is running. Attornys who specializes in small business can help you make the best decision on how to structure your company, and manage risk, liability, and taxation.
Manage Your Risk
Yes, in business you have to risk some to win some, but be smart about your risk. It’s best to only risk money you can afford to lose. Proceed slowly and aim for steady growth, not giant over night returns.
Check out what else Geoff Williams has to say about keeping your personal finances safe from your business here.
