Small Business Management Kenya

How to Separate Business and Personal Money

Why separating business and personal money helps owners understand true profit.

Mixing business and personal money is one of the most common reasons small business owners lose clarity.

Use separate accounts where possible

A separate till, M-PESA account or bank account makes tracking easier.

Record owner withdrawals

If the owner takes money from the business, record it clearly.

Do not hide personal spending as business expenses

This makes profit reports inaccurate.

Review withdrawals monthly

Owner drawings affect cash flow and should be understood.

Separating money gives a more honest view of business performance.

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