Entrepreneurs, let’s have a heart-to-heart: if you’re still mixing personal and business finances, it’s time to stop—immediately. Commingling funds is one of the most common mistakes small business owners make, and it’s also one of the most dangerous.
First, it’s a nightmare for bookkeeping and taxes. When your personal and business expenses are tangled together, tracking deductible business costs becomes guesswork. Come tax season, this can lead to missed deductions, costly errors, or even audits. Clean financial records protect you—and your accountant’s sanity.
Second, commingling pierces the corporate veil. If your business is an LLC or corporation, one of its core protections is legal separation from your personal assets. Mixing funds undermines that protection. In a lawsuit or creditor situation, you could be held personally liable—your home, savings, and other assets could be at risk.
Third, it makes financial decision-making nearly impossible. Want to know if your business is actually profitable? You can’t, not accurately, if you’re paying personal expenses from the business account or vice versa. Growth plans, cash flow forecasts, and funding decisions all suffer when the financial picture is murky.
The solution is simple, and powerful: separate accounts. Open a business checking account, get a dedicated business credit card, and only use them for business transactions. Pay yourself through a regular owner’s draw or payroll—not by swiping the business card at the grocery store.
As your advisor, your bookkeeper, or your future self—I’m begging you: please stop commingling. Clear financial boundaries protect your business, your peace of mind, and your future.
Your business deserves to be treated like a real business. Draw the line today. You’ll thank yourself tomorrow.