Showerthought: That one tax workshop in Austin made me stop mixing business and personal money

I was at a small business meetup in Austin about 5 years ago, and the speaker asked how many of us had a separate checking account for our freelance work... I was the only one not raising my hand. She told a story about a freelancer who got audited and spent weeks sorting through coffee shop receipts. I opened a new account the next day and it saved me so much headache come tax time. How do you guys keep your money separate without it feeling like a chore?

3 comments

3 Comments

karen_hill31d ago

Honestly, that separate account thing was just the start for me. I went and got a whole separate debit card for it too, the kind with the business name on it. Makes it impossible to even mess up at the register. I also set a calendar reminder for the last Friday of every month to move my 'pay' from the business account to my personal one. Treating it like a real paycheck makes the whole thing feel less like random cash and more like a real job.

adam1861d ago

Wow, that's actually brilliant. I always just used one account and it was a mess. The separate card and scheduled "paycheck" idea makes it feel way more legit. I'm stealing this for sure.

knight.uma1d ago

My old system was chaos until @karen_hill3's paycheck idea.