Psst…It Should Never Be
“Just Business”
As a founder, your day-to-day cash flow and long-term financial success are deeply connected—both personally and in your business. That’s why we highly recommend creating both business and personal books, along with combined cash flows, for all of our clients.
By managing both sets of books and combining cash flows, you gain a holistic understanding of your finances. This elevates your ability to make strategic decisions, plan for the future, and maximize tax savings. Plus, it’s often a pleasant surprise to find that the cost of maintaining personal books is almost always offset by the tax savings we uncover through our comprehensive approach.
The peace of mind this creates? Priceless.
Why We Recommend Managing Both
Managing the
Back and Forth
Most founders fund their businesses themselves, and their personal finances often depend on compensation from their business. This leads to a constant back-and-forth between personal and business finances. Even with careful separation, transactions can easily be mischarged or overlooked. We excel at creating great books that ensure every transaction is accurately recorded, no matter where the money is spent. This sets us apart from most providers who may not be as skilled in this area.
Managing Cash Flows,
Especially in Tough Times
As a founder, you’ll inevitably face tough times when it comes to cash flow—these periods can be extremely stressful. Building a business is costly, and you’ll likely use personal savings or credit cards to fund operations during lean times, or even forgo a salary. That’s why it’s crucial to look at combined cash flows to strategically move money where and when it’s needed. In difficult times, charting a path out of the crunch is vital not just for the business, but for your peace of mind. And in good times? It’s exciting to see how increased business profitability drives progress toward your personal financial goals.
Getting Loans
Whether you're securing funding for your business or applying for a personal loan, lenders will require both business and personal financial statements. Disorganized personal finances can make it difficult to present accurate financials. Additionally, monitoring your credit score is essential, as it can be negatively impacted by taking out credit cards or merchant loans, potentially leading to missed payments. We help create well-organized personal books, making it easy to generate financials. We also assist in managing credit access, monitoring your credit score, and keeping an eye on your lending profile.
Maximizing Tax Deductions
One of the perks of being a founder is maximizing business expenses for tax purposes—there are many deductions people often overlook. We work closely with your tax CPA to ensure that all possible deductions are captured, reviewing both business and personal spending to record everything accurately for your business.
Legal Risks of Commingling Funds
Commingling personal and business funds can create legal risks, especially when it comes to protecting the liability shield that your business entity provides. This is a crucial area to understand in detail, and we work with you and your lawyer to ensure compliance and safeguard your liability protection.