Why Small Businesses Should Keep Business and Personal Money Apart

Ask many small business owners whether their business made a profit last month, and the honest answer is "I'm not sure". The reason is usually the same: business money and personal money live in the same pocket.

The problems with mixing money

• You cannot tell if the business is profitable.
• Stock money gets spent on household needs, and the business shrinks.
• You cannot show clear records to lenders, suppliers or the tax office.
• Family members see money in your pocket and assume the business is doing well.

A simple system

1. Open a business wallet. Register your business on EriPay and take all customer payments into it, by QR code, payment link or transfer.
2. Pay business costs from it. Stock, rent, transport and staff come from the business wallet.
3. Pay yourself a salary. Once a week or month, transfer a fixed amount to your personal wallet. That is your money for household needs.
4. Leave the rest to grow. Profit stays in the business for restocking and expansion.

Know your numbers

With all business money in one wallet, your transaction history shows sales, costs and what is left. Review it monthly. If the business balance grows after paying your salary, you are profitable.

Save for business goals

Create a Savings Goal for big business purchases, like a fridge, a second sewing machine or festive season stock, so they do not compete with daily cash flow.

Separate today, grow tomorrow. Open your EriPay business account.