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I need tips or suggestions on how to budget at home business from separate personal finances

I wish to start a business but I don't want to mix up finance between personal and business. Or can you just put the money in your personal account if your the only employee doing the work? #accounting #financial-accounting #taxes #tax

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Rose’s Answer

Even as a sole proprietor, it is best not to comingle accounts, especially for tax purposes. If you are using a name other than your own to conduct business, you will probably need to file a fictitious business name statement before you can open a business account. Check your county website for more information on business licensing.


There are quite a few simple accounting packages that will make your life easier. QuickBooks is commonly used by small businesses. Tax software like TurboTax will help you complete the various schedules required of a small business owner. You'll want to do your tax planning in advance, rather than waiting until it is time to file.

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Benoit’s Answer

I do own an at home business while working for PwC and I suggest you to keep the bills of your at home business separate from personnal bills. Using an Excel document is also a great way to keep track of your revenus and expenses. Make sure to put first your essential personal expenses in your budget and then decide how much you can spend in your business. To have separate accounts is a very good idea too.

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Monica’s Answer

My parents have a small business and I have helped them maintain their books for a number of years. I would highly recommend keeping separate accounts for personal and business. It will allow you to keep track of your revenues and expenses - which will be important come tax season. Try using Excel to list out your income and expenses. You could also purchase a computer software, such as Quickbooks.

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Paul’s Answer

I don't own a business myself but I would think it would be easier to manage your personal finances as well as those of the business if you kept separate accounts. When you own a business it is extremely important to track every penny and this will be difficult if you just have one account for everything. Banks allow customers to have multiple accounts which would make your budgeting mush easier but be aware that most banks charge a fee if your account balance is below a certain amount. To avoid the fee, you may want to consider operating out of just one account to start off and then separating them when your have enough to open your business account above the threshold. Note that this account you designate for your business can just be a simple checking or savings account used specifically for the business. You don't need anything fancy. That being said, if you would prefer to just use one account that's fine BUT make sure you document everything you spend and keep receipts. This will be important come tax time.

Thank you comment icon Great advice from Paul. In addition, I would advise opening a separate credit card and downloading apps to keep track of all your receipts for expenses for your business. Keeping track of everything can be difficult so reconciling once a month or so can greatly help. Good luck on your business! Aislyn Zhu
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