STTBusiness CoursesWriting Courses
Home  |  About Us  |  Testimonials  |  F.A.Q.s  |  Enrol Online  |  Student Community  |  Contact Us  |  

Student Login:

Enter your username and password below to access the student area.
Username:

Password:

Login
Password Reminder

Sign Up For Email News

 

ABCC Logo

  Minimize

Business Articles

PrintPrint  
Article List
Keep Business and Personal Lives Apart

Keep Business and Personal Lives Apart
By Dan Boudreau

 

When it comes to owning a business, newbies often make the mistake of combining their business and personal affairs. As a business owner, it's healthy to separate yourself from your business and treat your business as a separate entity.

 

A little investment of energy early on can bring huge dividends later in the life of your business. For example, set up a business bank account, rather than mixing your business and personal expenses - your accountant and bookkeeper will both be thankful. You will also enjoy the benefits: less confusion and lower accounting and bookkeeping costs, particularly when your friendly neighbourhood tax auditor comes knocking.

 

New owners have a tendency to dovetail their personal and business lives, usually in an effort to save a few dollars. I have done this in the past and it only leads to difficulty. Any savings quickly evaporated when it came to sorting out the mess later.

 

Think of your new business as a separate entity, like having a baby, building a house, or hatching an egg.

 

Here are some ways to separate your business from your personal life.

 

  1. Separate your personal time from your business time.

     

     

  2. Coach your customers to contact you during your business hours.

     

     

  3. Train your friends to contact you during personal hours.

     

     

  4. Consider yourself to be an employee of your business and pay yourself a wage.

     

     

  5. Open a business bank account, pay business expenses from that account and pay your personal expenses with your wages.

     

     

  6. Establish separate telephone and fax numbers for the business.

     

     

  7. Create a separate Internet and email presence for the business.

     

     

  8. If you're home-based, create a separate space for the business and if possible, have a separate entrance for customers.

     

     

  9. Even if your business is a proprietorship for which the tax authorities view you and your business as the same entity, set-up your business with its own bookkeeping and accounting systems.

 

There are some great payoffs for separating your personal and business affairs. You will:

 

  • Know your personal and business expenses

     

     

  • Be more effective at calculating costs and setting prices

     

     

  • Find it easier to deal with auditors

     

     

  • Lower your bookkeeping and accounting costs

     

     

  • Be better prepared if you decide to sell the business or bring in a partner

     

     

  • Have more peace of mind

 

With much to gain and little to lose, I urge you to consider your business to be a separate entity from yourself.

 

Dan Boudreau is Author of Business Plan or BUST! and hosts the RiskBuster Practical Business Planning Oasis at http://www.riskbuster.com

 

Article Source: http://EzineArticles.com/?expert=Dan_Boudreau
http://EzineArticles.com/?Keep-Business-and-Personal-Lives-Apart&id=1488889


  Comments

Copyright 2009 STT. All rights reserved. | STT, 8-10 Dutton Street, Manchester, M3 1LE, UK
Phone: 0161 819 9911 | Email: info@sttcourses.co.uk | Conditions of Website Use |
all major credit cards accepted
Web Design and Web Development by WSI Hudderfield