Being told to have a separate business bank account from your personal account is one of the first things you’re ever told when starting a business. And even though everyone’s heard it, not everyone is doing it. I have a self-employed barber I’m working with now who went through my ‘B2P Wealth’ Course and while he finally started his separate business checking accounts (woohoo) he needed the last 3 years cleaned-up because his money from barbering was going directly into his personal bank account.

So, for those of you who are running your business from your personal bank account, here are 5 reasons why you should separate them today:

#1. Ability to have clarity on income the business is generating

#2. Ability to project cash flow by looking at similar months in the past

#3. Ability to avoid overspending when buying personal items

#4. Ability to establish a clear audit trail in case you’re ever in an audit

#5. Ability to generate financial statements

During the show I also came up with another reason, so I actually had 6 instead of 5 reasons:

#6. Ability to file taxes easily without separating personal items from business expenses

I hope these reasons encourage you to finally take the leap and open that business bank account you’ve been meaning to open.

For the video version of this, check out the blog: https://www.moneysavvybarberstylist.com/blog/5-reasons-every-barber-and-hair-stylist-should-have-a-business-bank-account

The Hair CEO

Episodes

5 Reasons to Separate Business & Personal Funds