Having one bank account can get messy. You need buckets. Here’s the breakdown of the accounts you need to get organized with your business(es).
Income Account - All money flows through this channel. Use this checking account to funnel out to the other accounts at the end of the month.
Tax Account - Set aside 20-30% of your income (ask your CPA) for when the tax man comes.
Operating Expenses - It takes money to make money. This account is used to pay out all the operational costs you may incur within the business.
Payroll/Owner’s Comp - After operating costs are paid, ensure the team gets paid out.
Savings/Profit Account - Dividends get paid out to owners at the end of the quarter for some businesses. Rack up 3-6 months here too, so you can dip in if there’s an emergency.
Dividends / Investments - Not every business does this, but it sounds like a pretty bright idea. It can either be blended with a savings/profit account, or it can serve as its separate investing account. $$$$
