Three Reasons for Two Accounts
Keeping your business and personal bank accounts separate is so important, yet so often overlooked. That’s why I decided to dive into three of the most compelling reasons to take the leap today!
1. Figure out expenses for taxes waaaaay the heck easier
Think of the amount of time and energy you will save when you already know that everything you spent on your business was in one place. Even if you aren’t yet ready to have two separate bookkeeping systems, something as simple as a printed bank statement gives you valuable insights into where your money is going in regards to your business’s needs versus your personal needs.
Your brain and time are your most valuable resource. Do all you can to protect those “decision coins”! Allow yourself to save the headache of combing through bank accounts to figure out what was for business, and what was for personal… you may even wind up with a better tax situation!
2. Get to a place where we consciously think about how money flows to and from our business life and our personal life
While it may feel safer to be able to “get money right when we need it” because it’s “just right in there”, using one account for your personal life and one for your business actually allows for a whole new level of freedom.
Figuring out how much you need to live the life you want AND run the studio you want can be both exhilarating and terrifying, but it is well worth it. Having separate accounts reduces overspending, allows cash flow (when money comes in and out) to be more intentional, and keeps you aware of how you can expand your studio world.
And, who doesn’t like to know just how much they are making each month? You can create a “salary” for yourself and get the wonderful dopamine hits of planning out your raises and bonuses! When you make that “salary” the one thing you know you MUST pay… then you see where you’ve got money left over to create something awesome and build up some capital in the studio.
3. Become distinct and separate from our businesses
Sure, in some cases, you *have* to have two accounts, legally. If you have registered as a DBA, or choose to become an LLC, you’ll need two accounts anyway.
Aside from the legality, the mental shift in looking at your business as a completely separate thing makes you ripe for the “What If” Factor.
The “What If” Factor is that special sauce that allows our brains to freely roam about in dreaming, risking, and planning.
When you take the “I won’t be able to pay for rent/mortgage and groceries” out of the equation (since you’ve already decided that your salary is the first thing you pay), you can now ask, “What can the business afford to invest in?” This subtle difference is powerful and motivating.
Do you have separate accounts for your voice biz?
Why or why not? I’d love to know…
What freedom could you give yourself and what relief if you did?
Let me know in the comments below.
All my BeastyBoss,