Guides · 6 min read
How to keep your business money and personal money apart
The short answer
Open a second account that is only for the business, have every customer pay into it, and pay yourself a fixed amount from it once a week. Keep business cash in its own purse. Then the business account shows what the business really has, and your own money stops disappearing into it.
Step 1Open an account that is only for the business
If your business is registered with the CAC, open a business account at your bank; they will ask for your certificate. If it is not registered yet, open a second account or a mobile wallet (OPay, Moniepoint, PalmPay, Kuda and others all work) and use it only for the business. Give it a clear name in your banking app, like "Shop account", so you never send from the wrong one.
Step 2Make every customer pay into it
Change the account number everywhere customers see it: your WhatsApp status and catalogue, your Instagram bio, your invoices, the paper on your counter. If you use a POS machine, set its settlement to the business account. From today, every sale lands in one place.
Step 3Give business cash its own purse
Keep a separate purse, box or pouch for business cash, and never pay for personal things from it. At the end of the day, either pay the cash into the business account or leave it in that purse for tomorrow's change. Your own money stays in your own wallet.
Step 4Pay yourself a fixed amount every week
Choose an amount you can take from the business every week without starving it, and transfer it to your personal account on the same day each week, for example every Friday. This is your pay. Start small and raise it once you know your real profit; our records guide shows you how to see it.
Step 5Write down anything you take for home
If you take a carton of noodles for the house or ₦3,000 for transport home, write it in your book as "taken for myself". It is not wrong to take it; it is only a problem when it is invisible, because then the business looks poorer than it is and you cannot tell why.
Step 6If you must borrow from the business, pay it back
Emergencies happen. If you pay a personal bill from the business account, write how much and pay it back from your weekly pay. Treat the business like a friend you owe: you can borrow, but you return it.
Step 7Check the business account every Saturday
Look at what came in, what went out, and what is left after your weekly pay. If the balance keeps growing, the business is growing. If it keeps falling, you will see it early, while you can still fix it.
An example: one week in the business account
Emeka sells phone accessories. This is his business account for one week:
- Paid in by customers₦120,000
- Restocked cases and chargers− ₦64,000
- Shop rent for the week− ₦10,000
- Data and transport− ₦4,000
- His pay, sent on Friday− ₦25,000
Left in the business₦17,000
He paid himself ₦25,000 and still left ₦17,000 in the business to buy more stock next week. Before he separated his money, the same week would have felt like "the money finished", and he would not have known where it went.
Or let Clara do it
Clara can do all of this for you
Instead of trying to remember what you took for home, just tell Clara. She keeps money you take for yourself apart from business spending, so your book shows what the business really has.
I took 3,000 for transport home
ClaraI'll record ₦3,000 you took for yourself, not as a business expense. Save?
Free while Clara is in private beta. Works on any phone, even offline.
Mistakes to avoid
- Using the business account for school fees, food and gifts. Then you can never tell if the business is making money.
- Taking money "when you need it" instead of a fixed weekly pay. The business never gets a chance to grow.
- Giving customers your personal account number "just this once". Payments end up split across accounts.
- Paying yourself so much that there is no money left to restock.
Do this today
Open a second account or wallet on your phone, name it after your business, and send the new number to your customers on your WhatsApp status today.
Questions owners ask
Can I open a business account without CAC registration?
Most banks need a CAC certificate for an account in a business name. Until you register, a second personal account or mobile wallet used only for the business does the same job.
How much should I pay myself from my business?
Start with an amount the business can afford every week, even when sales are slow. Once you know your monthly profit, keep your pay below it, so part of the profit stays in the business to grow it.
What if my customers pay cash?
Keep the cash in a separate business purse, and either pay it into the business account at the end of the day or use it only for business spending, written in your book.
Or let Clara do it
Clara can do all of this for you
Instead of trying to remember what you took for home, just tell Clara. She keeps money you take for yourself apart from business spending, so your book shows what the business really has.
I took 3,000 for transport home
ClaraI'll record ₦3,000 you took for yourself, not as a business expense. Save?
Free while Clara is in private beta. Works on any phone, even offline.
