My #1 Bookkeeping Tip to Simplify Your Boutique Bookkeeping

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My very first bookkeeping client was making this mistake, so I shared this bookkeeping tip right away..

I saw a mix of personal and business transactions in her bank feed when she added me as a user to her Quickbooks Online account.

When I asked about it, she said she had linked her personal bank account to it because she didn’t have a business account 😳

Now, that may not seem like a big deal to you, but let’s look at this a little closer…

This Bookkeeping Tip Will Help You Avoid SO Many Headaches

Here’s 3 to Start:

1. It’s making your life 100x more difficult. You don’t want to have to sort through your own personal bank and credit card accounts to find the handful of business transactions each month. 

2. There’s no guarantee you’re finding all the business transactions in your personal account. By having a dedicated business bank account, you can have all your business transactions grouped together to make sure you’re taking advantage of all the deductions you can for your business. 

3. If you have an LLC, mixing all your personal and business transactions could actually VOID your LLC. It’s a term called “piercing the corporate veil”, and it puts all your personal property at risk if anyone ever comes after your business. 

How Do You Avoid These Headaches?

Get yourself a designated bank and/or credit card NOW, and start updating all your vendors and payment processors with your new information.

It doesn’t necessarily need to be a “business” account, but an account that is completely separate from your personal funds that is used ONLY for business purposes.

By Implementing This Bookkeeping Tip…

You know that client I mentioned earlier?

Once she made this change…

Her monthly bookkeeping is now done in about an hour per month when it used to take her 3+ hours.

I’m able to double-check that we’re catching all her business deductions each month by comparing our records to her business bank statement (this is all done within that 1 hour timeframe listed above)

Her personal property is protected from a lawsuit in case anyone has an issue with her business (not that anyone ever plans on that).

Need A Recommendation?

If you’ve been running your business through your personal accounts, then I want you to take action TODAY. If you’re in need of a free business checking account, then check out Relay Bank today!

You can open up to 20 checking accounts for free, which is great if you want to implement a cash flow management system such as Profit First. They also directly connect to Quickbooks Online, which means all of your transactions will feed directly into Quickbooks for easy categorization & tracking.

They are a 100% online bank, which means you don’t have to go stand in line at a physical bank branch somewhere to open an account, and the customer service is top-notch! They do partner with various ATM providers if you ever do need to make a physical cash deposit. To learn more about Relay, you can check out their website at https://relayfi.com/.

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