Dave WordenTriumph Business Solutions · Founder

Which Accounts Should Be Business Using Profit First- Ask Mike

31 Aug 2020 · 1 min

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In this brief Q&A segment, a viewer named Kevin asks whether profit and tax funds should be kept in personal accounts while other business finances remain in business accounts. The host, Mike, responds decisively: all accounts associated with a business should be set up as business accounts. He acknowledges that mixing personal and business accounts is technically possible but argues it creates unnecessary complexity. By consolidating everything into business accounts, the business owner simplifies financial management and avoids convoluted accounting structures.

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. 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.