Separating Business & Personal Finances

When you decide to open a new business, you may not think it is important to create a separation between yourself and the business. Although that may seem easier to start with, longterm, it can actually hinder you, and even be damaging to your personal life. There are many reasons to separate your business and personal finances and it does not have to be difficult to do!

Why it’s Crucial to Separate Your Finances

Separating your business financials from personal has one encompassing importance: a clear understanding of your business. This clarity has many benefits. For one, bookkeeping becomes easier for everyone. The separation of accounts means you don’t have to sift through each transaction to see if it’s business related or not. Thus, saving time on monthly bookkeeping, allowing you to see deductible business expenses, and having more refined reports on your cash flow, budget, and more! Another way having different accounts is beneficial is that it protects your personal assets. If anything were to happen to the company, having intertwined accounts can mean loss of these personal assets as there was no distinction in the beginning. Next, taxes can be time-consuming, stressful, and even confusing for some. By having distinct accounts, it makes tax season a little more effortless and even reduces your risk of filing something incorrectly, or triggering an audit. Finally, having independence as a business can build credibility and show professionalism. This is because some individuals, and even financial institutions, may find business names to be more trustworthy over personal names. Also, by allowing it to run on “its own,” this can show confidence in your company, and gain further trust. 

Where Do I Begin to Do This?

Once you have decided to start the process of establishing your business as its own entity, it may be hard to know where to begin. A good place to get the ball rolling is connecting with a CPA (certified public accountant). CPAs can guide you in what the best type of business set-up (think LLC, etc.) is for your needs (and wants) and ensure your personal finances remain segregated. If a CPA is currently out of the question, as they can be quite expensive, consider speaking to other business owners and where they started as well as researching the different types of business structures. (Feel free to check out this link to decide on what business structure will work for you.) Next, it’s time to create an EIN for your business. EIN stands for “employer identification number” and works similarly to a social security number. You can do this through the IRS’s website or your CPA can do it for you. After this, you’re going to open a bank account solely for your business. Spend time researching what the best bank is for your needs and what type of account will benefit you the most. Furthermore, don’t forget to apply for any credit cards you need and make sure that anyone in the business who may need to use company money has a business card/account as well. Additionally, it may be likely that you will use personal funds to kick off this account. If you are working with a CPA, you’ll want to ensure these transfers are clear and coded correctly for your business. Finally, choose an accounting software that works for your company. There are many different types of accounting software to choose from but it is crucial to pick one to keep your business books clean. Spend time looking up what would work for you and what needs you require for your business. Alternatively, hiring a CPA, or even other accountants/bookkeeping professionals, can aid you by cleaning up your books every month and then regularly reviewing them so you have a greater understanding of where your financials stand. Moreover, keep track of your receipts! While this can be quite tedious, receipts prove that the money you spent is correctly coded, and for some expenses, guarantees the tax write-off for X category is true. Making this habit from the start can make any audit run more smoothly if that were to happen. What’s more is that some software, like QuickBooks Online, allows you to upload receipts from your mobile device. So, again, choose business software that works for you. Once all these steps are taken, you are ready to move forward to start the journey of transforming your (small?) business!

Separation is Very Beneficial!

Overall, maintaining different accounts is vital to the longevity of your business, can help your business grow, save you from difficulty in the future, and isn’t overly complicated to begin with!

The Many Benefits of Personal Cleanliness & Organization

It is, usually, expected that your workspace should be clean and organized. Though this is true, it is just as vital to keep your everyday spaces clean, like your home and/or your car. There are many positives to having your life clean and organized.

Cleanliness Benefits

Some of the biggest upsides to keeping your surroundings clean, is an increase in mood, focus, and productivity. For many, orderliness can help individuals feel they have control over their environment – allowing them to feel a bit better in stressful times. Furthermore, cleaning can cause you to concentrate on X task(s), which can help you feel more calm and less anxious about whatever you’re going through. On the contrary, disorderliness can cause someone to lose focus, feeling overwhelmed as their brain has to process many things at once. Moreover, lost focus means less productivity as you scramble around to find solutions. For some, repetitive cleaning can teach self-discipline and make you happier. When your spaces are clean, you are able to move onto other problems and find more peace. Moreover, keeping your house clean will make you more grateful and appreciative to simply be at home.

Alongside all of that, cleanliness is, obviously, important in preventing illnesses for yourself and others. According to the CDC, washing your hands reduces respiratory illnesses by 21% and diarrheal illnesses (from weak immune systems) by 58%. By keeping your spaces clean, you reduce the amount of allergens you’re surrounded by and lower your risk of breathing diseases as well.

Organization Benefits

With cleanliness, comes organization. It is essential to recognize the plus side of organization within cleanliness. For starters, organization can improve decision-making, allowing you to come to decisions quicker and boost your confidence, since you know you have all the information you need. Additionally, when there is no clutter, you have more space to surround yourself with items that inspire and motivate you – bringing more creativity into your everyday life. Another way organization can better your life is in financial management. When you’re organized, you can keep track of your documents, record your expenses easier, and create a budget properly.

Like cleanliness, organization can improve physical health in different ways. Often, when one’s life is organized, they manage time better. This time management can help you create routine and empower you to create a healthier lifestyle overall.

Tips to Help Clean-up your Spaces

Cleanliness & organization does not come natural to everyone, and may even prove difficult for others. Luckily, there are a few tips & tricks to help get your life clean and orderly! First, it’s okay to start small. Looking at everything that needs to be done can be extremely overwhelming. Pick a space, or task, to do each day. Breaking things up day by day can ensure you don’t increase stress. Also, you could opt for making a timer. Choose what you wish to clean and set a timer. Your goal here is to clean as much as you can until the timer goes off.

If there is a big task you are starting, consider breaking things down into piles. It may be less taxing if you start with the biggest things first. That may be boxes or even excess furniture. Then, you can move onto the smaller items – like books, toys, clothes, etc. Separating your items out can make it seem smaller as well as give you the opportunity to let go of items you no longer need.

With all of that said, don’t feel ashamed to ask for help! Sometimes, life can get ahead of you or it can just be a bit much. Whatever the reason is, having a friend or family member sharing the load can help you get through this. If you have the funds, it may also be worth your while to invest into a housekeeper and/or any equipment that could make cleaning easier for you (i.e. like a Roomba).

Proper Cleanliness & Organization is Important!

In summary, organization and cleanliness plays a vital role in health and life satisfaction; thus enhancing both your personal life and work life!

Navigating Workplace Stress

In any facet of life, stress is bound to appear. Perhaps one of the most common stressors in life is that in the workplace. Whether it’s conflict with others or work is just a little overwhelming, there are many ways to handle these stresses. 

Handling Workplace Conflict

One of the biggest contributors to workplace stress is conflict in the workplace. No matter where the conflict has arisen, there are many ways to deal with this. For starters, take time to understand how you feel. Breaking down the issue can help you really see what the problem actually is. Think about what made you upset, why did it make you upset, where is that feeling coming from? Sometimes, our emotions can contribute to creating a problem when there really didn’t need to be one. Once you’ve taken the time to cool down and understand what the problem is, it’s time to have a conversation with the other party. Shifting your language in an argument can really help the conversation go more smoothly. Instead of saying “You did X,” replace those sentences with I statements. “I feel X because of Y.” When you use statements that start with You; they push blame onto others and usually create a negative, or defensive, reaction from others. Be sure you are truly listening, not just hearing, and that you are listening to listen, not react. As the conversation flows, ask questions to clearly define the future and how to revolve this argument. A couple helpful examples include, “How do you want to move forward?” or “What does that look like?”. Asking these open-ended questions can lead to better resolution and help to avoid conflict in the future as everyone now has set expectations or a better understanding. Keep in mind that communication is a two-way street and that it’s important to recognize their viewpoint and work together to come to a solution.

How to Deal with Other Stressors

There may not be any conflict between others in the workplace, but there could still be aspects to work that are stressful to you. First off, perhaps your workload is too heavy, or feeling extra hard for you at the moment. One way to try to deal with this is by talking to your manager. Be sure to discuss whether you need help, if the deadlines are unrealistic, or any other problems you may have. Another way to deal with your workload is by balancing your time better and being kind to yourself. Check that you’re dividing your time as it is needed by each task and that you’re really focusing on each task at hand. Also, sometimes our need for perfection, or just doing something well in general, can lead us to be more critical than needed. A task may be taking you longer because you are spending too long critiquing it. Remind yourself that you are doing the best you can and that is enough. Another common workplace stressor for some is feeling alienated at work. It’s important to connect with others. If you are having trouble, do not hesitate to reach out to your manager. Alternatively, your HR department may be able to help you find resources and ways to connect with others within the workplace. In addition to the aforementioned, breaks can be a powerful tool to mediate stress and increase motivation for the day. According to the Harvard Business Review, “taking longer breaks in combination with more frequent short breaks can provide more energy, motivation, and concentration than infrequent short breaks.”

Even if our workplace environment isn’t causing us any conflict, the workload itself, or even the job you are doing, can still be stressful. Learning to deal with these “personal” stressors is important, too. To begin, and perhaps the most obvious start, is you need to be able to recognize what is causing you so much stress. Stress can cause all sorts of physical health problems like: headaches, insomnia, fatigue, loss of appetite, and much more. Pay attention to the signs your body gives you, if you have a hard time seeing when you’re stressed. A good way to help you figure out what is stressing you, is by writing down anything that has negatively affected you and your reaction to it. While you write down these stressors, consider asking yourself the following questions. One, “How did this make me feel?” Two, “What was my reaction?” And three, “What are some ways of resolving it?”. Keeping track of the signs of stress and learning what stresses you can help you find ways to counter, or lessen, stress in your everyday life.

Even when we know why something is stressing us, and what to do to fix it, it can still be difficult to manage stress. One good way to manage stress is ensuring that you really detach from work once you are home. Find something that engages you and forces you to think about that activity you’re doing instead of work. These things are often referred to as coping skills. Also, avoid dwelling on thoughts of work and distracting yourself with your phone while you do your activity. For some, using relaxation methods may work better as a coping skill. This includes things like meditation and breathing exercises. Something else that can be beneficial in getting rid of stress is reframing your thoughts. This is much easier said than done, but it can be extremely beneficial to you. An example of this is, your favorite coworker didn’t say good morning to you. You may jump to the conclusion that they are upset with you for whatever reason. Instead of accepting that instantly, look at the situation objectively. Maybe they had a rough morning or are going through something personal right now and aren’t really in the mood to socialize. As I often like to say, “perception is reality,” and the way you look at something is not always the truth. Retraining your brain like this is invaluable in the long run as it can help regulate your emotions, therefore minimizing stress. Finally, taking care of yourself physically is vital to stress management. Eating well and maintaining a healthy lifestyle can greatly impact your mental health and thus cause you more stress if you are not doing okay. Remember, if anything feels overwhelming, it is okay to seek professional help! You are not alone and life is extra challenging for all of us at some point or another.

Stress Doesn’t Have to Take Over Your Life!

Through learning how to conquer your personal stressors and managing tough conversations with others, you are all set to navigate through stress in the workplace!