Juggling Multiple Income Streams? Here's How to Keep Your Bookkeeping Sane

Running more than one business? Whether you're consulting on weekdays and shipping products on weekends, here's the first thing you need to know:
One business = One set of books. Always.

Let’s break down what that looks like—and why it matters more than you might think.

🛑 First Things First: Don’t Mix Money
If each of your businesses has its own EIN (Employer Identification Number), they are considered completely separate legal entities.

And the IRS expects you to treat them that way.
Mixing bank accounts, expenses, or revenue between businesses?

• Creates tax-time nightmares
• Risks an audit
• Can even pierce the corporate veil—meaning you lose legal protection

🧾 What Each Business Must Have
Treat each business like its own mini-empire. That means separate everything, including:

• ✅ Business bank account
• ✅ Business credit card
• ✅ Accounting software (or at least separate QuickBooks files)
• ✅ Revenue and expense tracking
• ✅ Monthly financial statements

If it touches money, it needs its own lane.

📊 Monthly Review = Business Health Checkup
Don’t just wait until tax time.
Each month, sit down and review:

• Profit & Loss Statement
• Balance Sheet
• Cash Flow Report

This gives you a clear look at how each business is performing—and helps you make smarter decisions without financial fog.

🧾 Taxes Get WAY Easier When Books Are Clean
Come tax season, each business files its own return. If your records are mixed, expect:

• Hours of untangling transactions
• Possible IRS issues
• Endless frustration

If your books are clean and separate? Filing becomes a straightforward process—not a late-night caffeine-fueled panic.

Let’s Make Your Bookkeeping Boring (In a Good Way)
Good bookkeeping isn't glamorous, but it keeps your business strong and your stress levels low.
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Need help cleaning up or organizing your books? Schedule a call and let’s simplify your setup—so you can focus on growing, not scrambling.