Managing finances is a key priority for small businesses. Yet many business owners make financial mistakes that may cost them dearly.
For example, a new study has revealed 27 percent of small business owners use the same checking account for personal and business finances.
Downsides of Using the Same Bank Account for Business and Personal
While it may seem easier to consolidate all finances into one account, it can actually create several problems, including issues with tax write offs and lack of access to credit card processing systems.
Other Key Highlights of the TD Study
The survey conducted by TD Bank further shows 69 percent of business owners handle their company’s finances themselves. That’s worrisome because most small business owners lack a thorough understanding of financial management.
Luckily, business owners understand the need to get their finances in order. About 16.5 percent say that getting a better handle on cash flow is a top priority this year.
Another key insight is the difference in demographics when it comes to how small business owners manage money. For example, female business owners (68 percent) are less likely to separate their funds than their male counterparts (82 percent).
About the Study
New Jersey-based TD Bank surveyed 303 small business owners across the U.S. for the study.
Check out this infographic created with the data for more details:
Images: TD Bank
Getting a business checking account has to be one of the first things you do for a business. Too many reasons to count. Just do it.