Separating personal and business finances are one of the first steps any new entrepreneur should take. Among other benefits, it improves the organization and makes tax season easier. If you’re not sure how to separate your finances, don’t worry: The following four steps will help you get there.

Open a New Checking Account

Opening separate bank accounts is a very simple way to begin differentiating your personal and business finances. A great option for this is creating a business checking account. Different banks have different requirements for opening one, so shop around to find the right fit. Be wary of fees.

If you don’t meet the requirements for opening a business checking account, then simply open a second personal checking account and use it only for business purposes.

Build Savings with Automatic Transfers

You should also have a separate account in which you keep long-term savings for your business. Figure out how much you can afford to save each month, and then set up automatic transfers, preferably to a high-yield account. This will help you build up a reservoir of money for both emergencies and large purchases. 

Obtain a Business Credit Card

Another way to separate your business finances from your personal finances is by opening a business credit card. According to Investopedia, applying for one is largely similar to applying for a personal credit card. (Keep in mind that business credit cards typically have somewhat high-interest rates. Use them responsibly.) 

Set Up a Salary

Finally, you can also separate your personal and business finances by paying yourself a salary. This is a common practice among business owners, especially those who have set their businesses up as an S-corp, LLC, or sole proprietorship. In the case of an LLC or sole proprietorship, you will draw wages from your business’s revenue. In the case of an S-corp, you can treat yourself like any other employee to whom you would pay a salary.

Hungry for more tips on how to run a successful business? Just take a look at Commercial Capital Funding’s other blog posts.