mingle banking accounts - Complete Controller

Personal banking refers to the banking services used by customers unrelated to their business. Personal banking is processed through the local branches of a bank. Some personal banking services include opening different types of bank accounts, credit card accounts, mortgages, personal loans, and lines of credit. Other services are provided, such as ATM services, online banking services, transfers, and many others. Check out America's Best Bookkeepers

How Small-Business and Personal Banking are mingled

When an entrepreneur mixes their personal account with a business account, adverse results may occur. Business bookkeeping becoming mingled with personal banking and bookkeeping can complicate finances for both. Entrepreneurs face many challenges when starting a small business. They must figure out how to run business operations, manage finances, and decide where the business will be located. While making these decisions, the entrepreneur often uses their own personal account for investing money into the business as initial capital. From the business owner’s point of view, it may seem logical to use their personal bank account to fund the business. However, there can be long-term consequences from mingling personal banking and small business bookkeeping. Check out America's Best Bookkeepers

Adverse effects of mingling Small-Business and Personal Banking

  • Small business owners who mix personal banking with business operations often do not maintain a system of checks and balances with accounting statements. They do not effectively integrate cash flow and financial statements with their balance sheets.
  • Business bank accounts are useful for business owners. In times of need, they can obtain immediate loans and financial services. Credit card and debit card payments can be made easily, along with cash and check services. Customers use these facilities and return them to the same business account when convenient.
  • If the income generated is separately given to the small business owner’s individual salary accounts, then there is a less percentage of tax charged. Tax deductions can be made more accurately. However, if the personal banking account is mingled with the business account, the tax will be charged at a higher percentage.
  • Tax is paid on-time more easily through business accounts. Cash flow statements must only refer to business operations, not personal banking. Thus, bookkeeping functions are more streamlined.
  • An audit primarily pertains to business accounting. However, when both accounts (personal and business accounts) are intertwined, income and expenses can be misreported. This affects the audit process as well. Check out America's Best Bookkeepers
  • If a personal credit card is used for any business operations, then a log of all records of these activities must be kept. This is a tedious and time-consuming task to stay on top of. It is important that this process be error-free, as well. Mingling personal banking and business bookkeeping makes it difficult to keep track of the records.
  • As a business grows, financial needs will increase, and this will eventually create a need for a separate business account. A separate business account gives business owners a clear picture of their business’s functions and credit history.


A separate business account prevents mishaps regarding the interpretation of accounting statements. It increases the credibility of the business. Keeping two separate accounts for your personal and business funds ensures that transactions are recorded appropriately and taxes are filed more accurately and punctually. Having one big account can facilitate costly errors being made and overall confusion when it comes to your business’ bookkeeping procedures. When your business grows from a small investment, a separate account will eventually be a requirement. It is also important to thoroughly research different banking options in order to find an institution that suits your personal and business needs. A little bit of reading and planning can make a world of difference when setting up your different accounts.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers