SEPARATE YOUR BUSINESS AND PERSONAL BANK ACCOUNTS
Hopefully, you’ve taken the first step in treating your writing as a business and filed the legal paperwork to create a business (Biz Tip #1). The next step is to separate your personal and business money.
Do you have a business checking account for your publishing company?
This step is important not just to segregate your money and make it easier at tax time. It also feeds into your business mindset necessary to have a successful business. You’re taking your writing seriously and intend to supplement your income, or even replace it, with your books and stories. Having a separate business bank account will help you make better decisions for your business.
Everything to do with your author business will flow through your business account. You’ll deposit any book sales from any of the retail sites or your author website into this account. Likewise, ALL expenses for your business will come out of this account.
Trust me, it will make your accounting life so much easier when you do this! No more mixing business and personal money. This will make it much easier at tax time to figure out your business income and expenses. And you won’t wonder any longer if your business is making money or not.
Choose a bank, either the one you use for your personal accounts or a different one, and open a BUSINESS checking account. To do so, you’ll need the paperwork from setting up your business.