For many entrepreneurs, it can be difficult to separate business and personal finances. Whether it’s a small-business owner who is just starting or a veteran business owner with a successful enterprise, it can be difficult to find the right balance.
Studies show that one of the most common reasons that nearly 20% of new businesses fail to make it through their first year is due to various financing hurdles, such as cash flow problems and the inability to obtain critical capital. Separating business and personal finances is key to overcoming these hurdles.
By setting up a system to keep personal and business finances separate, entrepreneurs can be confident that they have the cash they need to keep their company running smoothly.