You might be thinking that personal finance and business finance are two completely different worlds. Well, there are some big differences and it might take some time to learn how to do your business bookkeeping and accounting, or you may choose to hire a professional to help keep you on track. Still, there are some basics that are the same for both. Keep in mind that your business can have a credit record too (or your business accounting can affect your personal credit record and financial reputation) and it is important to pay your business bills on time too…
If your business is NOT a corporation, then chances are any credit cards or bank accounts you have, or taxes you pay will be in your own personal name. This means that your business finances really do show up on your personal financial record. This can affect your personal financial obligations like mortgages, personal loans, car loans, etc. Paying your business expenses and bills is as important as paying your personal bills and obligations–they are both a reflection of you. Additionally, your personal financial record will be your main reputation and consideration when you attempt to set up credit accounts or take out loans or lines of credit for your business. One definitely affects the other.
If your home business is not too complicated, you can organize your business accounts payable just as you do your personal or family bills–making sure to pay bills on time and keeping up with any interest or other obligations. This can be challenging if you have a start-up business or one where income is not regular. You may be able to work out payment arrangements with those you owe money to that will be more compatible with the cash flow of your particular business. Be assertive and take a proactive approach to your business accounts payable and you’ll be able to stay organized and pay debts and obligations in a timely manner.
See Also: You Are the Money–Taking Charge of Your Business Income
Coping With a Loss or Drop in Business Income
Hiring a Bookkeeper or Accountant for Your Business