The #1 Bookkeeping Mistake That's Costing Small Business Owners Time and Money
- sarahicenteno27
- Jun 19
- 2 min read
Updated: Oct 19
As a bookkeeping professional at Sara's Financial Group LLC, I see this mistake over and over again: mixing business and personal expenses. It might seem harmless at first, but this simple oversight can create major headaches down the road.
Why Separation Matters
When you use your personal credit card for business purchases or pay personal bills from your business account, you're setting yourself up for problems. Here's what happens when you keep everything separate:
Tax Season Becomes a Breeze Instead of spending hours sorting through mixed transactions, your accountant can quickly identify business deductions. This means lower preparation fees and fewer questions from the IRS.
Clear Financial Picture You'll actually know if your business is profitable! Mixed accounts make it nearly impossible to see your true business performance.
Legal Protection Keeping accounts separate helps maintain your business entity protection. Mixing funds can pierce the corporate veil in legal situations.
Save Money on Professional Fees Your bookkeeper and accountant will spend less time untangling your records, which translates to lower fees for you.
The Simple Solution
Get dedicated business accounts from day one:
Business checking account
Business credit card
Business savings account (for taxes and emergencies)
Pro tip: Even if you're a sole proprietor, having separate accounts makes everything cleaner and more professional.
Your Future Self Will Thank You
Trust me on this one - the 30 minutes it takes to set up business accounts will save you countless hours and hundreds of dollars later. Your accountant will thank you, the IRS will be happy, and you'll have the clear financial data you need to grow your business.
Need help getting your bookkeeping organized? Sara's Financial Group LLC offers comprehensive bookkeeping services to keep your business finances on track. Contact us today to learn how we can help streamline your financial processes.
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