Do Not Combine Business and Personal Accounts

A small business can get extra funds through a merchant cash advance. It is advised to keep business and personal expenses separate. The inability to do so may be disastrous for the receiver of the advance.

Here are five reasons to keep your accounts separated:

- Government rules state that only a "business" can extract funds from a business. If you are using an account for both, you are running the risk of making it hard to prove the existence of your "business."

- When tax season comes, you might have a hard time differentiating business expenses from personal expenses.

- You are not required by law to have a separate account for business, but it is required that your records are accurate. Keeping concise and accurate records ensures the absence of an audit.

- It becomes easy to miss certain deductions you are entitled to when you mix business and personal accounts.

- It looks more professional to have your own business account. Clients may not view you as a serious businessman if they must write checks to you personally rather than writing one out to your company's name.