Keep It Business, Not Personal
By Jennifer Tarzian, Mon Jan 2nd

Keep it Business, Not Personal

** A quick-start guide for home-based businesses - learn how tokeep your business and personal finances separate.

Managing a small corporation, as well as having a home-basedbusiness myself, I have learned how important it is to keeppersonal and business matters separate. Not only does it makelife less confusing, it can also save you money on your taxes.

The first thing I recommend is to open a separate checkingaccount just for your business. Use this account to deposit allself-employment income. Do NOT use this account for wagesreceived from an employer. This account needs to be totallyseparate. You will pay all your business related expenses solelyfrom these funds. When you pay business expenses from yourpersonal account, it is much more difficult to accurately trackhow much money you are spending for your business. And, missedexpenses could mean missed tax deductions!

The other suggestion I have is to open a credit cardspecifically for your business expenses. Make sure you choose acard that suits you and your business well: i.e. cash back,travel rewards, etc. Use this card for all your businesspurchases and of course, make payments to it with your newbusiness

checking account. For more detailed benefits on adedicated business credit card, I highly recommend readingCharles Clar's article athttp://creditcards.youngparentsmagazine.com/A-Dedicated-Credit-Card.htm

Last but not least, I recommend purchasing some form ofaccounting software. It doesn't have to be anything fancy orexpensive, just a place for you to enter your income andexpenses for your business. Even a very simple program canprovide you with financial reports demonstrating your company'sprofitability, as well as help you to set a budget. Mostprograms also give you the option to print reports that aid intax preparation.

As with any other financial decision, I highly recommend youmeet with an accountant or tax preparer on an annual basis atthe very least. He/She will be able to direct you in the bestways to make the most of your hard earned money. But remember,the harder you work at keeping your business and personalrecords separate, the easier it will be for your accountant tohelp you. Best of luck in your business and please visit us athttp://creditcards.youngparentsmagazine.com/ for more articleson credit and your business.

About the author:Jennifer Tarzian holds a Bachelor of Science degree inPsychology. Her experience includes sales, service, and managinga small corporation. She is proud to be a stay-at-home mom.