Read what Wise Woman Investor, Anna Mills says about controlling business and personal monies…

Rule #1(The Golden Rule)-Don’t mix personal and business money. Open separate checking accounts for the business and make sure all business monies flow through that account. Even money for personal needs should have a check written to you form the business. This is good business sense and offers advantages during an IRS audit. One of the best defenses in an audit is a clean trail of financial activities.

Rule #2- Treat yourself like an employee. Instead of drawing a paycheck, most business owners take money out when they need it. Don’t be haphazard, pay yourself a regular amount on a regular basis. Even if money isn’t flowing yet, seta a small amount to take out every couple of weeks. It’s a habit that will help you keep things under control.

Rule #3-Produce and review monthly financial statements. Don’t be misled by just checking the balance in your checkbook. That can be deceiving and give you a false sense of success. It may look like all is well, however, don’t forget upcoming bills and business needs. The only true gauge of what’s in the bank is to take a close hard look at your financial statement every month.

These 3 rules may seem simple, but not following is what gets investors into financial trouble. Following them puts you in a better position to balance your business & personal finances. These rules will keep you from taking a wild ride on the financial roller coaster of feast & famine.

Happy Investing
Anna Mills

This entry was posted on Thursday, March 29th, 2007 at 9:08 am and is filed under General Interests. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.