How To Manage Money

As An Entrepreneur

If you're operating a small business that is not incorporated or otherwise organized you may inadvertently co-mingle business funds. You know with personal funds which is not advisable. I mean to say it's ok If you keep good records but it can be tricky at times if you can't distinguish between your personal expenses versus your business expenses.

Most people actually manage money with a single bank account. Obviously, they are working and getting paid and they bank that money and distribute it to their cost of living and bills. So that's their personal bank account.

In business, you would need to position yourself a little better. Now your personal bank account is in fact a liability if you include paying your business and personal bills as a whole from that one account. This model will take you on a downward spiral very quickly.

It's important to change this by having that awareness to have financial order in your life. Open a business account once you have registered your business entity.

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