Setting up your bank accounts, credit cards and your GL (General Ledger) accounts; Sole Prop or Incorporated

  • Always keep your personal and your business transactions separate
    • Open a business bank account and most banks will allow credit cards even at start up with minimal limit – this allows a business to slowly build up their credit the first year – DO NOT BE LATE ON YOUR PAYMENTS the first year if looking to increase your limit.
    • Keeping your personal and business accounts separate will ensure you are always aware of what is going on in your business, but also ensure you are not missing any potential expenses/revenue but also if a project related business you are capturing all costs to be billed etc.
  • GL Accounts – assign GL#’s to your accounts for ease – the standard d# format below
    • 1000 Assets
    • 2000 Liabilities
    • 3000 Equities
    • 4000 Revenue
    • 5000 COGS
    • 6000 Expenses