Keep Business and Personal Finances Separate (Bank of America Coupons inside)

Small scale business people may often have problems managing finances. While most of the money they used to kick off came from their savings, most of their personal funds now come from their businesses.

Financial management is really a tough thing to do. But although it’s a given that business and personal money are often be intertwined (especially in the case of a home-based business), it is necessary to keep them separate.

The best thing to do is look at business as one entity and home as another. This works better, not just on the personal standpoint, but also on the financial one.

There are top 5 reasons why:

1. Your business is a hobby - There are several federal and state government policies that stipulate only businesses are allowed to deduct business expenses. Now let's say your business is more of a hobby and not a means to make considerable money. You may have a difficult time telling the government that you are indeed running a business and not a side hobby. Many business owners compound this problem by using a personal bank account too.
   
   
2. Lack of professional attitudes - The only way people will take your business seriously is if you do too. Accept checks made out to the business and not your own personal name. This establishes a divide between you and your business.
   
   
3. Taxation - Businesses are entitled to pay government taxes, and these don’t cover individual tax payers. When you merge finances, it will be difficult to determine the exact taxable amount rendered by your business every month.
   
   
4. Paper Trail - If in need of money for your business and considers availing of grants or loans, supporting documents (financial reports, etc.) are needed for approval. Financial management makes it easier to know which finances belong to your biz.
   
   
5. Growing Your Business - When finances are separated, you get to focus on your business without thinking of personal concerns. You will be able to see the business’ overall performance and decide on the best way to enhance it.

Separating business and personal funds is difficult, but is definitely an intelligent choice to do. By establishing a separate business profile, you will be strengthening the purchasing power of your enterprise. The simplest tactic to get underway is to open a business bank account. In every transaction concerning your business, place the name of the biz.

To help you out with your accounts here are a few coupon codes for you to use when you open a new account with Bank Of America. Hope this helps.

Bank of America Coupon Codes:

• Get $50 when you open a small Business Checking Account. Coupon Code: SBFOL2
  
  
• Get $25 when you open a Personal Checking Account. Coupon Code: CRREM2

If you like my post, subscribe to My Feed