Keep your personal and financial records separate. This goes right along with my first tip.
Don’t use your personal account to pay for business expenses and vice versa. Get a business bank account as soon as you can.
Most business bank accounts now offer debit cards so you can still pay for internet purchases with business funds. Remember, no matter what kind of structure you choose, the bank will require some kind of documentation that the business is formed. This will make it much easier to start keeping accounting records and can really save your bacon if you get audited or when you come to sell the business.
Action: Check. Do you have good company records or are they a shambles?
Do you mix up business and personal expenses? What do you need to do to get a clear financial picture of your business? Do you need to have a chat with your accountant or bookkeeper about how to record expenses properly and how to set up your accounts so they work for you.
Join the ConversationDo you have any tips on keep business and personal expenses separate? Share with us in the comments. Or use them to create a little bit of extra motivation and accountability to get your action task for today done. And I would love you to join me on Facebook or Twitter.
Image used under Creative Commons license courtesy of Andres RuedaAndrew Dubinsky is a successful entrepreneur with 4 profitable start-up companies under his belt. He is the CEO of Encomia, where he developed electronic signature technology for the mortgage industry. Mr. Dubinsky has been mentioned in Time Magazine, The WSJ as well as numerous other banking/mortgage trade publications. You can catch him on Twitter @AndrewDubinsky.