Separate Accounts = Cleaner Records White background, blue graphic of a business building on the left, a black line separating it from the right, a orange graphic of a person.

Bookkeeping Tip: Separate Accounts = Cleaner Records

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Separate Accounts = Cleaner Records White background, blue graphic of a business building on the left, a black line separating it from the right, a orange graphic of a person.

If you’re running a small business and using one bank account for both personal and business expenses—here’s your gentle reminder to stop. It doesn’t just make tax time harder, it clouds your view of your cash flow.


Set up a dedicated business checking account and route all income and expenses through it.

Cleaner books, better decisions, fewer headaches.

✅ Bottom Line

  • If you’re a sole proprietor, there’s no legal requirement to separate accounts—but it’s strongly recommended for accurate records.
  • If you’re an LLC, S-Corp, or C-Corp, you must keep your finances separate to maintain legal protections and tax compliance.

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