The first rule.
WHY IT MATTERS MOST
Mixed money makes everything else difficult.
WHAT IT CAUSES
You cannot tell what the business earned or spent Filing becomes guesswork Reconstruction takes hours per month You cannot tell whether you are profitable
WHAT TO DO
A separate business bank account All business income into it All business expenses from it
WHAT ABOUT PAYING YOURSELF
Transfer money to your personal account, recorded as a drawing or salary.
Not by paying personal costs directly from the business account.
WHAT IF YOU PAY A BUSINESS COST PERSONALLY
Record it and reimburse yourself.
Do not simply absorb it, or the business costs look lower than they are.
WHY THAT MATTERS
Understated costs produce overstated profit and underpriced work.
FOR A BUSINESS NAME REGISTRATION
The business is not legally separate, and the account should still be.
WHAT TO DO IF THEY ARE ALREADY MIXED
Separate them from a chosen date.
Do not attempt to untangle years retrospectively without advice.
WHAT THIS SINGLE CHANGE DOES
More for your records than anything else.
