Why it is advised to separate your business incomes from their own personal income.

[TOZZIBLINKZ]

When a particular goods or service is being sold or render to a customer , client , or consumer , business income and as well as personal income is earned or in other business terms business profit is earned and also personal profit is also earned as well . Majority of business owners perform the illicit and unnecessary mistakes and arrows of not separating their business income from their personal income and when a particular goods or services is being sold or rendered . that is why in many prominent cases , business owners who are fully aware that they are making a lot of sales because of their loyal customers who keep coming to them because they feel satisfied and comfortable with their rendered and sold goods and services , but at the end of the day , week , month , and year , these business owners are not able to have a concrete , specific , and considerable amounts of money to call business profit or business income which is made and accumulated at a specific time which is used to replace or rebuy inventories and stocks that the business has run out from .

The inability to have positive and considerable business profit so as to be able to replaced business inventory and stock issues needed by the business , is usually caused as a result of not separating your business income from your personal income earned as a result of carrying out business activities , because most business owners are more likely to spend money doing things that may concern or may not concern the business , and to them they think that they are using their own personal income without knowing that they are using the business income meant for replacing business inventory and stocks . So in other to avoid this from happening , you should take the initiative within yourself as a business owner , to quickly separate your business income from your personally made profits .

 

[eldavis]

What most business owners or young entrepreneurs do not understand is that a business is an entity of its own, meaning it does not matter if you own the business, automatically it is an entity that needs to have its own support system. It is idea for every business to have its own account, this is to ensure the continuous growth of the business. Having a separate account also helps create discipline, when your personal cash and that of the business is sharing one account, you can easily spend into it without actually knowing.