If you’re are just starting out running your new small business as Sole Proprietorship, it is important to understand that you, the business owner are personally responsible for the debts and liabilities. Because of this, it’s important as a sole proprietor to keep business and personal finances separate.
I recommend opening up a separate account for business finances only. This is one of the basics of opening up a small business. It makes the business trail easy to follow at tax time for both you and Canada Revenue, and makes sure you don’t miss out on any important deductions your business is eligible for. This will also help you prevent problems for your business down the road.
Please note, it is okay if you choose to keep business and personal records in one checking account. But make sure you keep separate records for all business and personal finances.