Commingling - why Parline starts here

Most new businesses run everything through one checking account and one card: the client payment and the grocery run land on the same statement. That’s commingling, and it makes the business’s real numbers impossible to see.

Parline’s answer is to keep two sets of books - one for the business, one for personal - and tag each transaction to the one it belongs to. When you import a statement, you go down the list marking each row business or personal.

Two transactions matter especially:

• Moving business money to yourself is an owner’s draw, not an expense - it doesn’t reduce profit, it reduces your stake.
• Covering a business cost with personal money is an owner’s contribution, not revenue.

Getting those right is most of what “un-commingling” means, and Parline walks you through it.