While doing a closer research, we've come to realize the number one (#1) mistake a whole lot of start-ups likewise already established businesses always make. And we've taken it upon our self to point it out.
The very menace we are talking about is:
#ACCOUNTABILITY
Not separating your business and personal finances.
From an accounting perspective, this is a major no-no for managing business finances (how will you know how much profit you’re generating if you’re mixing and mingling your personal funds with your business funds?).
As a business owner, it is really hard to make smart decisions for your company without clear financial data. But from a legal perspective, commingling funds between a personal account and a business account has an even worse result — commingling is a surefire way to lose the liability protection from any business entity you have created.
Here’s how to avoid it:
Set up financial accounts solely for business income and expenses — that means business bank accounts, business PayPal accounts and business credit cards. No accounts should be shared between your business and personal finances.
