- Keep personal and business separate. One of the easiest and best ways to distinguish business from personal expenses is to have two separate bank accounts: a personal account and a business banking account.
- Keep good records. If your business is small and you do choose to manage your business finances together with your personal account, it is important to clearly define which charges are for business purposes, since these can be deducted on a tax return, and which charges are non-deductible personal expenses.
- Seek expert advice. Surround yourself with a team of advisors that you trust including a business banker, tax and legal professionals, prior to starting your small business.
Small Business Owners Risk Heavy Penalties And Professional Fees By Mixing Personal And Business Records
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