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Every business on the planet needs to manage its money.  Whether you’re a solopreneur or have 100,000 employees, good money management is a basic need.  Yet there is little practical help on the basics.

When I search the internet, I find lots of articles and videos telling business owners what they should do, but not exactly how to do it. That’s not helpful.

I decided to tackle this problem by creating an affordable resource that walks a business owner through some of the basics: how to open and use a business bank account, and what to do with receipts. These seemingly simple things make a huge difference in good money management.

Why is it so important to keep your business and personal finances separate?

At a very basic level, if your personal expenses are mixed in with your business expenses, it’s virtually impossible to tell if your business is making a profit.

I’ve had business owners tell me that as long as there’s enough money coming in to cover the mortgage, then they don’t really care if they’re making a profit. That may get you by when the money is flowing, but what happens if it slows down?

And on a practical note: what happens when tax time rolls around? Chances are it’s total chaos and a painful process.

If good money management isn’t enough of an incentive on its own, here are two legal reasons to consider:

  1. The IRS frowns on “Significant commingling of business and personal funds.” Try searching the internet for “IRS commingling funds” and you’ll see a ton of articles by CPAs talking about how this could set you up for an audit and potential penalties.  
  2. Many people choose to set their businesses up as a LLC or corporation in order to protect their personal assets from business-related lawsuits. This is a smart idea, but if you fail to keep your business and personal money separate, then you could lose this protection.

What can I expect to take away from the course?

  • You’ll learn how to track your expenses and income using a business bank account, making it much easier to understand how your business is performing.    
  • It will be much easier to manage your books and prepare for taxes. This can save you time and/or money, whether you do bookkeeping and tax prep yourself or pay someone else to do it.      
  • If you are ever audited, the IRS may ask you to provide proof that specific revenue or expense items are truly business income or expenses. If you apply the lessons in this course, you’ll have the business receipts that can help prove your income and expenses are real.

How is the course set up?

The course is set up in five different lessons, with a total of eight videos and a couple of worksheets to help you get organized. Most videos are around 10 minutes, so that it’s consumable in easy chunks.

I chose to make it an online course so that business owners can work at their own pace when they have the time and the energy to tackle it – whether that’s on your lunch break or at 2 am.

The videos provide the same hands-on, practical advice I provide to my clients, in an affordable package for solopreneurs who need the help but aren’t in a position to hire a consultant.

 Want to learn more? Take a look at the curriculum for Separating Your Business and Personal Finances.