Keep Personal and Business Finances Distinct

ARTICLE | June 23, 2025

Entrepreneurs, freelancers, and small business owners often find it convenient to combine their personal and business finances. But while it may seem efficient in the short run, separating personal and business funds is a foundational step toward professionalism, accurate accounting, and legal protection. By using distinct bank accounts and payment methods, you give yourself the clearest financial picture and reduce the risk of potentially costly complications down the road. Whether you run a thriving enterprise or simply work freelance gigs on the side, drawing a firm boundary between personal and business transactions can help you maintain compliance, boost credibility, and avoid the most common pitfalls that stem from co-mingling funds.

Read the full article here.

Our firm provides the information for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. This article is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.