Accounting 101 for Freelancers

The Freelance Switch blog tackles a few of the most important money management practices for those just starting out in a freelance venture. Along with getting a good billing/invoice system in place and getting serious about your expense tracking, guest writer Allan Branch drops one of the most important tips to ensure your security as an independent worker:

Step 4 – Don’t use your personal bank accounts to make purchases for the business.
Have at least one business bank account and use it exclusively. If you violate this rule you risk “piercing the corporate veil.” Which means you lose your business and your house and your car and money if you got into legal hot waters.

Sound advice, and it makes sense organizationally, too. For more Freelance 101, check out previous tips on pricing freelance work and the 7 Habits of Successful Freelancers. Photo by miguelb.