Are you a new business owner? Congratulations! But don’t forget to keep a close eye on both your business and personal finances. Mixing the two could lead to a very messy situation. Not keeping business and personal finances separate can leave entrepreneurs with a mound of debt. Here are five tips for keeping your overall finances in tip-top shape.
1. Create separate business and personal accounts. This should be the first step to making sure the two don’t intertwine.
2. Assemble a financial team. When it comes to personal finances, you need a trusted team by your side. Financial professionals such as a certified public accountant and certified financial planner can guide you in the right direction. A certified public accountant can help you with your tax-planning needs, and a certified financial planner can provide a plan for your overall finances.
3. Utilize financial tools. There are a number of products that can make life easier when it comes to managing your finances. As a new business owner, jotting things down on pen and paper just won’t do. Instead, use financial-tracking software such as QuickBooks (www.quickbooks.com) for your business. Furthermore, consult with your accountant and ask him or her to recommend a version that is compatible with his or her system.
4. Get organized. You can’t afford to be disorganized. Take time to establish separate filing systems for business and personal items. More importantly, make sure to keep all business and personal paperwork (such as receipts) separate.