07/05/2025
30 THINGS TO DO WHEN BUSINESS AND PERSONAL MONEY MIX UP
1. RECOGNIZE THE MIX-UP
The first step to solving any problem is acknowledging it. Understand that mixing personal and business funds is a serious financial misstep that must be corrected quickly.
2. STAY CALM AND FOCUSED
Panicking worsens things. Stay calm and focus your energy on rectifying the situation.
3. ASSESS THE DAMAGE
Calculate exactly how much personal money is in business accounts and vice versa. This gives you a clear picture of what needs to be done.
4. SEPARATE ACCOUNTS IMMEDIATELY
Open or re-establish separate bank accounts for personal and business use if you haven't already done so.
5. CREATE A FINANCIAL WALL
Avoid any further transactions that blur the lines between personal and business finances.
6. HIRE A PROFESSIONAL ACCOUNTANT
An expert can help you unravel the mess and advise you on how to correct the records properly.
7. REVIEW BANK STATEMENTS
Go through all relevant bank statements and flag personal expenses that were paid from business accounts and vice versa.
8. CLASSIFY AND CATEGORIZE EXPENSES
Clearly identify what expenses are personal and which are business-related for the past 6–12 months.
9. DOCUMENT EVERY TRANSACTION
Maintain proper records for every financial transaction to avoid future confusion.
10. REPAY WHAT’S OWED
If you used business funds for personal use, consider repaying the business account as soon as possible.
11. TRACK LOANS TO SELF OR BUSINESS
If personal funds were used in the business, record them as loans or owner’s equity injections—not income.
12. USE ACCOUNTING SOFTWARE
Programs like QuickBooks or Wave can help you distinguish between personal and business expenses.
13. CREATE A BUDGET FOR EACH
Make a personal budget and a business budget and ensure they do not overlap.
14. SET A STRICT SALARY
Pay yourself a fixed salary or owner's draw from the business rather than randomly withdrawing funds.
15. AVOID US
