Ep 19 - Overcoming the Commingling Challenge: Keeping Your Finances Organized
Podcast Summary:
In this episode, Audrey Heesch, the host of "Practical Money Magic," discusses the importance of separating personal and business finances as an entrepreneur. She acknowledges that many successful entrepreneurs struggle with this issue due to a lack of financial literacy education. Audrey emphasizes that commingling personal and business funds can lead to complications, especially during audits, and encourages entrepreneurs to maintain clear separation for better financial management and decision-making.
Audrey understands the challenges entrepreneurs face in this area, as society primarily teaches individuals how to be employees rather than business owners. She encourages listeners to be patient with themselves and seek help if needed, as separating finances can feel overwhelming initially. Audrey stresses the importance of taking responsibility for financial choices and not shaming oneself or others.
Throughout the episode, Audrey shares insights and tips for untangling personal and business finances, including the importance of changing account information, seeking professional assistance, and taking small steps towards financial organization. She emphasizes the empowerment and mental clarity that come from having a clear understanding of one's finances and urges listeners to prioritize this aspect of their business.
Show Notes:
Introduction to the importance of separating personal and business finances as an entrepreneur.
Acknowledgment of the common struggle faced by successful entrepreneurs in maintaining separation.
Risks of commingling personal and business funds, including complications during audits.
Societal emphasis on being an employee rather than an entrepreneur, leading to a lack of financial literacy.
Encouragement to be patient and seek help if needed, as separating finances can be overwhelming.
Importance of taking responsibility for financial choices and avoiding self-shaming or shaming others.
Tips for untangling personal and business finances:
Changing account information
Seeking professional assistance (bookkeepers, accountants)
Taking small steps towards financial organization
Benefits of financial separation:
Better financial management and decision-making
Mental clarity and empowerment
Preparedness for audits
Encouragement to prioritize financial organization for overall business health and mental well-being.
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