Startup Accounting
Common Financial Mistakes First-Time Founders Make
Collated by Aparna Devalla, CPA
Curated by Rubric Financial
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Mixing Personal and Business Finances
- Using a personal bank account for business transactions makes it nearly impossible to produce clean financial statements and creates audit risk.
- Commingled funds can pierce the corporate veil, exposing founders to personal liability for company debts and obligations.
- Open a dedicated business bank account and business credit card before spending a single dollar — Mercury, Brex, and SVB all offer startup-friendly options.
- Reimburse founders for legitimate business expenses through a formal expense reimbursement process with receipts and documentation.
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