Mike answers whether Profit First accounts should be personal or business. His answer: all of them—profit, tax, operating, and owner's draw—should be business accounts. Mixing personal and business accounts creates unnecessary complexity.
I got a great question that came in from Kevin, also around Profit First. He said, "Which accounts should be business accounts, and which accounts should be personal accounts? Shouldn't profit go to a personal account, and perhaps even tax, and the other accounts be business?" The simple answer is this: if you have a business, make all your accounts business accounts. Now, technically, you could have some personal and so forth. But I would argue that that gets a little bit convoluted. So set up all your accounts as business accounts once and for all, and you're done. It's that simple. Wink wink.
