Why You May Want A Separate Checking Account

Sometimes starting a business is gradual, but normally there’s a point where you decide you want to do something and that’s the official “start” date.

If you’re anything like me, you’re a serial entrepreneur. You’re always trying new things and investing money to see if a new idea can turn into something real.

Personally, I began my jewelry company as a Sole Proprietorship under my Social Security number when I started out with my best friend. She and I split everything but I took care of the expenses.

Later, when I started my first market, I created an LLC easily through My Company Works. They filed out and submitted all of the paperwork to get me started and I would log into the state portal every year and pay $140 to renew my LLC. (My first year I forgot and it cost over $400 in a late fee! So now I renew early.)

At this point in my company, I created a new checking account but my credit cards were all over the place. Sometimes I only had one card with me, sometimes I would lend one to someone to run an errand and forgot to get it back.

I got to the end of one of my first years with my markets and with all of the hundreds of expenses and income from booth fees, my finances were a complete mess. That’s when I hired a bookkeeper to sort everything out.

This reminds me, if you decide to hire a bookkeeper they will be worth their money in gold. There have been many instances where my bookkeeper saved me thousands of dollars, especially in fees for various business taxes being late. If you don’t know what types of business certifications and sales tax you need, a local bookkeeper will have many clients and will be able to (cheaply) point you in the right direction.

Even if you decide not to get a bookkeeper, learning basic QuickBooks for yourself and your company will save you a lot of money. Investing in bookkeepers and accountants is a great idea as they normally pay for themselves in the deductions they find and expenses they catch.

It took almost two years, but eventually, I got everything organized. I got a few new credit cards, some in my business name, and I was able to assign various cards to my QuickBooks as business expenses. This made my accounting very easy.

Even now, I still have the occasional expense on the wrong card, but it’s nowhere near what it used to be and it makes my accounting much much easier.

If I could do it all over again, I would have opened a checking account for my business day one, or at least had a separate checking account for my serial entrepreneur projects. 

Read about why you might want to register for an LLC and open a business account!

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