Starting a new business comes with a litany of decisions to make, both logistical to financial. Some are required before getting started, while others are made along the way. One of the most impactful decisions is whether to separate your business and personal expenses or to let them mingle.
When Aaron Anderson, an entrepreneur in Philadelphia, first started opening businesses, he didn’t realize the importance of keeping accounts separate. “When I first started out, I didn’t know what I know now, so I just ran everything out of one account,” he said. “It’s very hard to separate finances when you’re first starting out, so I just used that same account to pay personal bills.”
The benefits of keeping your accounts separate
Anderson, however, quickly learned that keeping things separate was the way to go. After years of working in other industries, Anderson began opening franchises of The Original Hot Dog