Maintain a separate business bank account

If you do nothing else, at least open a separate bank account for your business. If you have more than one business, open a separate account for each one. Do not co mingle (mix) your personal expenses or receipts with your business expenses or receipts.

Deposit all your business income into your business accounts(s)and write checks for all of your business expenses from your business checking account(s). If you need money from your business for personal expenses write yourself a paycheck from your business checking account(s)and deposit it in your personal checking account. Performing these these simple tasks will make it much easier and save you money when you prepare or have someone prepare your year end personal and business tax return says Robert C Olivieri, Jr, a tax consultant for over 20 years. It also gives you a rough idea as to whether or not your business is making a profit.

Another benefit of your bank account is that it provides an independent record of your business activity that can be used to assist in the fair presentation of your internal business records and as an aid in correcting any omissions and errors by either the bank or your business.

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