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I thought paying for a separate business bank account was a pointless tax until my accountant yelled at me. | Freelance Finances - Vivisector

markb39•7mo ago

I thought paying for a separate business bank account was a pointless tax until my accountant yelled at me.

For my first year freelancing, I just used my personal checking account for everything. My logic was, 'It's all my money, why pay a monthly fee?' My accountant, a very patient woman named Linda, finally sat me down last quarter and showed me the mess. It took her 4 extra hours to sort my expenses from my personal groceries and vet bills, which cost me way more than the $15 a month a basic business account would have. She literally said, 'Mark, you're making my job harder and your life harder. Stop it.' Opened one the next day, and reconciling everything for this year has been stupidly easy. Anyone else put this off and regret it?

4 comments

4 Comments

wendy327mo ago

Honestly, is it that big of a deal? I've mixed personal and business stuff for years. My guy just asks for my bank statements and the business credit card bill. He sorts it out, that's his job. It feels like a made up problem to sell more bank accounts. If your accountant can't handle a blended statement, maybe get a new one.

samrodriguez7mo ago

Ever think about what happens if you get audited? The IRS wants clear lines between personal and business spending, and a messy statement is a red flag. Your guy sorting it out is just creating more work and risk for you both.

kelly.patricia6mo ago

Remember my buddy who ran a lawn care gig from his personal account. His "accountant" friend did his taxes. IRS audit hit, and they disallowed half his truck costs because he couldn't untangle the grocery runs from the gas for mowers. Took him two years and a real pro to fix it. Wendy32's guy might sort it, but the IRS doesn't play that game.

colethomas7mo ago

My sister ran a small craft business for three years using just her personal account. When she needed a loan to buy a better sewing machine, the bank turned her down flat because they couldn't see a clear business cash flow. Wendy32 has a point that a good accountant can sort the mess, but that doesn't help you prove your business is real to anyone else. That separate account is your best proof.