When you are busy taking care of customers, planning marketing efforts, and ordering inventory or supplies, it can be hard to stay on top of expenses. The last thing you need is to overspend or get lost in the receipts and numbers. If you establish separate accounts from the onset it will help you simplify and track the cost of doing business.
A great way to start is by choosing one credit card or bank card for business and one for your personal expenses. This way you will be able to see what costs are specifically related to your business and have an accurate reflection of how it is running. It also prevents possible accounting errors that can occur when your personal and business expenses are muddled together. As your spending increases, it will get harder and more time consuming to organize them for review. Having all your business related costs in one place will make it easier to check in and make decisions.