mingle banking accounts - Complete Controller

Personal banking refers to the banking services used by customers unrelated to business. Personal banking is processed through local branches of banks. Some personal banking services include opening different types of bank accounts, credit card accounts, mortgages, personal loans, and lines of credit. Other services are provided, such as ATM services, online banking services, transfers, and many others.

How Small-Business and Personal Banking are mingled Check out America's Best Bookkeepers

When an entrepreneur mixes their personal account with a business account, adverse results may occur. Business bookkeeping will also become mingled with personal banking and bookkeeping, which can complicate finances for both. Entrepreneurs have to face a lot of challenges when starting a small business. They have to figure out how to run business operations, how to manage finances, and where the business will be located. While making these decisions, the entrepreneur often uses their own personal account for investing money into the business as initial capital. From the business owner’s point of view, it seems logical to use their personal bank account to fund the business. There can be long-term consequences of mingling personal banking and small business bookkeeping.

Adverse effects of mingling Small-Business and Personal Banking

  • Small business owners who mix personal banking with business operations often do not keep a check and balance on accounting statements. They do not interpret cash flow statements and financial statements with the balance sheets in a productive way.
  • Business bank accounts are useful for business owners. In a time of need, they can get immediate loans and financial services. Credit card and debit card payments are made easily, along with cash and check services. Customers use these facilities and come back to the same business when they are made convenient.
  • If the income generated is separately given to individual salary accounts of the small business owner, then there is less percent of tax charged. Tax deductions can be made accurate. But if the personal banking account is mingled with the business account, then tax will be charged at a higher percentage. Check out America's Best Bookkeepers
  • Tax is paid on time through business accounts. Cash flow statements must only refer to business operations, not personal banking. Thus bookkeeping functions are made easier.
  • An audit is for business accounting but, when both accounts (personal and business accounts) are intertwined, the income and expenses are misreported. This affects the audit process, as well.
  • If a personal credit card is used for any of the business operations, then a log of all records of business operations must be kept. This is a time-consuming and challenging task to do. It should be error-free as well. Mingling personal banking and business bookkeeping makes it difficult to track the records.
  • As the business grows, financial needs will increase, and it will eventually need a separate business account. A separate business account gives a clear picture of business functions, and the credit history of the business will be clear. Check out America's Best Bookkeepers



A separate business account prevents mishaps in the interpretation of accounting statements. It increases the credibility of the business. When the business grows from a small investment, eventually, a separate account will be a requirement.


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