Top 3 Reasons Not to Combine Your Small Business and Personal Banking

If you have both personal banking and small business banking needs, you should most likely avoid combining them. Here are a few reasons not to combine your small business and personal banking. 

1. Incentives

You may want to separate your bank account so that you can take advantage of business banking incentives. Many banks will give you special features with a true business account that you could not get with a personal account. You may be able to save money on fees and earn additional interest. 

2. Avoid Temptation

Another reason that you will need to keep these separate is to avoid temptation. Many times, when you are struggling in one area or the other, you will be tempted to take some money. For example, if your business is not doing well, you may want to fund it with personal resources. Instead of using this approach, you may want to open a business line of credit to improve working capital. 

3. Taxes

You should also keep everything separate so that it will be easier to calculate your taxes at the end of the year. You need to be able to separate business and personal transactions for this process. If you accidentally use personal transactions as business deductions, you could find yourself in a lot of trouble with the IRS. 

blog comments powered by Disqus