You have probably heard people tell you to keep your business and personal expenses separate but if you’re a small business you may not see a need. Structuring your business separately can provide liability protection and help maintain a layer between your personal assets and business assets. Keeping things separate can also aid in accounting and record keeping as you will be able to differentiate between what your business has gained or lost. It can also help in building your business credit, which helps in securing funding for future projects. Now that we know the “why” of keeping your business and personal expenses separate, let’s talk about how you can accomplish this.
Applying for an EIN: Applying for an EIN is one of the best and most simple ways to maintain separation between your business and personal. Having this identification number keeps finances from running through your personal Social Security number and helps maintain a level of identity theft protection.
Setting up a business bank account: Having a business checking account separate from your personal finances can help easily distinguish between transactions and simplify the accounting process at year-end. It also makes it easier to monitor account activity on the day-to-day basis. When you take advantage of business services, there are generally specialized products and services at your disposal to help make your business more efficient. If your business is ready for a checking account or curious about what other services might be available, reach out!
Consider a business credit card: Another simple way to separate spending is by opening a credit card solely for your business. Credit cards are helpful when you have employees that may need to make everyday purchases but don’t need access to the actual business bank account. Some business credit card programs offer ways to limit spending to a certain amount or certain merchants. This can aid in fraud prevention and help you to keep an eye on expenses being charged to the account.
Partner with a financial institution: A relationship with a local financial institution and their business banking professionals can provide access to products and services that you won’t have access to on the personal financial services side. This can include Treasury Management services such as Remote Deposit Capture, wire transfers, and Positive Pay.
If you still have questions, please don’t hesitate to reach out! I would love to partner with you in 2025 to make your business the best it can be.
Brad Roling
Market President – Columbia
Brad Roling is the Columbia Market President for Mid America Bank. Brad has more than 10 years of banking experience that he uses to help businesses in and around Columbia thrive. When he is not helping your business with its financial needs, Brad is serving the community in a variety of capacities. He is proud to serve on the Ronald McDonald House Mid-Missouri Board of Directors as Treasurer, the Columbia Chamber Foundation Board, and Beta Theta Pi Advisory Board. Brad is a proud Mizzou grad and loves cheering on the Tigers!
