In a recent blog post, I touched on the importance of being financially ready to start your own business. But it goes much further than just having money saved up before leaving a full-time job. Here are a few things to know before giving up your job’s steady income to become a business owner.

Let’s assume you already know what you’ll need to be making to not only survive, but bring in a profit. And let’s also assume you can be comfortable without the certainty of steady income. If you’ve gotten those crucial steps out of the way, the next few pieces will be basic financial advice that every business owner should have.

1. Separate Your Personal and Business Accounts

This may seem obvious, but you’d be surprised how easy it is to put off opening separate bank accounts. For those who start off with a side hustle like I did, it’s only natural to at first put your initial income straight into your personal checking account. After all, that’s where you’ve been putting your paychecks, right? Trust me when I say that when you don’t separate business and personal income, things get messy. Because I always had a side hustle and kept that in the same place as my full-time job’s salary, I didn’t think anything of putting my first client’s check in there too. The first couple months I made this major mistake, and when it came to tax time, oh boy, it wasn’t pretty. 

But it isn’t just for tax purposes. It’s really to keep things organized so you can always be on top of your finances without everything being mixed together.  It’s essential that you’re always analyzing profits and losses, or, income and expenses. I am extremely particular about how I organize my finances, and I like to see all the incoming and outgoing money and how it all plays into my overall profits each month.

My advice is to open not only a business checking account, but a business savings too. Why? Every month I take 25-30% of my net profit and transfer it right over to my savings account. And I don’t touch that business savings account all year. Come tax time, it’s a heck of a lot easier to dish out the money when a) it’s already there b) I’ve basically pretended all along that that money is for Uncle Sam.

2. Hire a CPA.

After years of doing my taxes on my own, I couldn’t imagine hiring someone to do them for me. But when it comes to owning a business or being self-employed there are a ton of different things to think about. Your taxes will never be as simple as they once were, so hiring a professional to guide you will make things much easier. 

Find an accountant that will not only prepare your returns, but who will give you tax planning and business advice. This person will also help you with filing quarterly taxes and staying organized throughout the year. And while hiring a CPA may cost you a bit more than using an online software, keep in mind you can deduct accountant fees.