I have noticed this common misconception among small business owners who are unfamiliar with bookkeeping, it seems many think categorizing and reconciling are the same thing. To learn more about the differences keep reading.

It’s so important not to commingle your business and personal finances. If you don’t see your business as a separate entity then neither will the government or anyone who may decide to sue you, or your business. So in order to protect your assets you must create a layer of separation.