How to Manage Your Bookkeeping When Juggling Multiple Income Streams

Running more than one business? Maybe you’ve got your main consulting gig and that product-based side hustle you’ve been nurturing on the weekends? First things first: each business needs its own set of books. No exceptions, no shortcuts, no “but they’re both mine!”

Here’s why: If each business has its own EIN (Employer Identification Number), the IRS considers them separate legal entities - and so should you. That means separate bank accounts, separate credit cards, separate accounting systems… the whole nine yards.

Mixing finances between businesses is like letting your toddler reorganize your tax files. It creates chaos, makes tax time a nightmare, and can actually put your liability protection at risk. (Yes, piercing the corporate veil is as dramatic and serious as it sounds.)

Keeping things clean and separate isn’t just about staying out of IRS trouble - it also helps you:

• Clearly track profitability for each biz

• Make smarter financial decisions

• Keep your legal ducks in a row

Here’s what each business should have:

• Its own business bank account

• Its own credit card

• Its own accounting software or spreadsheet

• Separate revenue + expense tracking

And yes, you’ll want to review each business’s books monthly - think: individual profit and loss statements, balance sheets, and cash flow tracking. It’s not just best practice - it’s legally required.

When tax season rolls around, each business files its own return. Having clean, untangled books makes this a whole lot easier (and keeps your accountant or bookkeeper from sending you “we need to talk” emails).

Feeling a little overwhelmed trying to juggle it all? You don’t have to figure it out alone. Reach out, and let’s chat through it - we've got your back.