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If I’m honest, this is one of the mistakes I encounter most often, especially in new businesses. Because they feel that their business is still small, many people think it is not a problem to occasionally take money from sales for personal needs. At first it seems trivial, but if we continue to do this, over time we will have difficulty knowing the true financial condition of the business.
For example, today there was an income of IDR 2 million. Then some of it is used to shop for household needs, another part is used to fill up with petrol, and the rest is used to buy stock of goods. A few days later we started to get confused, how much profit does this business actually make? Has the money been used up for operations or has it been used for personal needs? Without clear records, questions like this are difficult to answer.
In my opinion, separating personal money from business money is not only a matter of discipline, but also a matter of respecting the business we are building. If our finances are in order from the start, it will be easier for us to calculate profits, determine promotional budgets, buy new stock, or make decisions when the business starts to grow.
I also recommend having a business-only account if possible. It doesn’t have to be an expensive account or have a lot of features. Importantly, all business income and expenses are recorded in one place so they are easier to monitor. Simple methods like this can reduce the risk of using money incorrectly without realizing it.
Another thing that is often forgotten is giving yourself a “salary”. Even though the business is ours, that doesn’t mean we are free to take money at any time. Determining the amount of income each month will keep personal and business finances separate. That way, we know which money is for living needs and which must remain in the business so that the business continues to grow.
If I may conclude, the habit of separating personal money and business money may sound simple, but it has a huge impact on the future of the business. A healthy business always starts with sound financial management. It doesn’t matter whether your business is still from home or already has many customers, being disciplined in managing your finances will help you see your business conditions more clearly. From there, every decision taken will be based more on data than estimates. Believe me, a strong foundation is almost always built from small habits that are carried out consistently every day.
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