Major Mistake: Mixing Personal & Business Funds
Mixing your personal and business funds is a big & confusing no-no. For one thing, it is an absolute tax time nightmare! It will be nearly impossible to make business deductions based on your business profit or loss. Not only that, you’ll have no way of knowing how much your business is actually making or losing. That means you have no idea how your business is doing financially. Also, if you were to ever need to apply for a business loan, you would have to show your business financials over time. If your personal and business finances are mixed, you would have no way to show this. In sum, keep them separate even if you're a sole operator. It will save you a lot of time, stress, and effort!