How to Keep Your Business and Personal Finances Separate

Running a successful business starts with strong financial habits—and one of the most important is keeping your personal and business finances clearly separated. Doing so helps you manage cash flow more effectively, stay organized, and protect your personal assets. At Machias Savings Bank, we’re here to help you build that foundation with confidence.

How to Separate Business and Personal Expenses

When you create a clear line between business and personal spending, everything from budgeting to tax time becomes easier. Here are a few steps to help you stay on track.

Open a Business Bank Account

Start by opening a dedicated business checking or savings account. This creates a clean separation between your personal and company funds, making it easier to manage daily expenses, track income, and plan for growth.

At Machias Savings Bank, our online banking platform makes it simple to monitor your business finances in real time. With features like eStatements, you can easily keep tabs on monthly activity and maintain accurate records—essential tools for staying organized and moving your business forward.

Apply for a Business Credit Card

A business credit card gives you flexibility in spending and helps your business build its own credit profile—separate from your personal one. That means more purchasing power and potentially better access to financing down the road.

As you make purchases and pay off the balance on time, you’ll strengthen your company’s credit score, making it easier to qualify for future loans or work with new vendors. It’s a smart tool that supports both day-to-day operations and long-term growth.

Take Out a Business Loan

When it’s time to invest in your business—whether it’s equipment, inventory, or expansion—a business loan can provide the funding you need without relying on personal savings.

Business loans are specifically structured to support commercial needs, offering access to capital that aligns with your business goals. However, it’s important to know that business loan rates and terms can vary based on your credit history, time in business, annual revenue, and the type of loan you’re applying for.

That’s why working with a trusted financial partner can make all the difference—helping you navigate the process, understand your options, and choose a solution that supports long-term success.

Why Separating Personal and Business Expenses Matters

Creating financial boundaries between your personal and business accounts isn’t just about staying organized—it helps you:

• Simplify bookkeeping and reporting
• Build a strong business credit history
• Protect your personal assets and credit
• Ensure company funds are used appropriately
• Maximize tax deduction opportunities

It’s a small shift that can make a big impact on your financial clarity.

Manage Business Expenses With Machias Savings Bank

At Machias Savings Bank, we’re proud to support Maine business owners with practical tools, local insight, and personalized guidance. From managing cash flow to planning your next move, we’re here to help you grow with confidence.

Meet our business banking team to explore the right solutions for keeping your business finances on the right track.