Intermediate level · Module 3: Business Finances for Entrepreneurs · Lesson 1 of 3
Separating Business and Personal Finances
Protect the business from personal spending.
In this lesson you will
- Separate business money
- Pay yourself a fixed amount
Key concepts
separate accountsowner's salarydrawingsrecords
The lesson
Use a separate mobile money account or wallet for the business.
Pay yourself a fixed, planned amount instead of taking money whenever needed.
Record all money taken out; unplanned withdrawals are a common reason small businesses fail.
Step by step
- Open or designate a business account.
- Set your owner's pay.
- Record withdrawals.
- Review a month.
Practice activity
Set up separate finances and owner's pay.
Expected result: Separated finances with a fixed owner's pay.
Check your understanding
-
Why pay yourself a fixed amount?
Show answer
To stop unplanned withdrawals draining the business.
-
What should be used for business money?
Show answer
A separate account or wallet.
Taught live by an instructor — online or in person. Free course lessons are for self-study and do not lead to a certificate — see registration options.