Bookkeeping and Tax Prep Tips for Small Businesses #1

Separate your business account and personal account

Pay yourself regularly. Either with Owner’s Draw, Shareholder’s Distribution or a Paycheck.

Spend the money in your personal account ONLY for personal use.

Spend the money in your business account ONLY for business use.

If you invest money in the business, transfer money from personal account to business account.

It helps you keep track of how your business is doing as well as prepare for your tax returns and the end of the year.