Since I have a separate bank account, keeping track of my business income and spending is easy. Instead of plugging the numbers into complicated accounting software, I use a simple spreadsheet.

While separate accounts may alleviate some disputes, they may stoke others, such as if one partner is paying for all of the essentials and the other is not contributing, says Riddle.

A transaction that merely exchanges investments between accounts at fair market value will not violate the separate accounting requirement. 2 1. IRC § 402A (b) (2). 2. Treas. Reg. § 1.402A-1, A ...

Separate accounting is important in situations where multiple beneficiaries are named, as it can allow each beneficiary to determine their RMD obligations based on their own status.

For starters, having a separate payroll account means you’ll have to manage more than one bank account. Small-business owners trying to stay on top of their accounts may find this a hassle.