Whether you are just getting started in working from home, or whether you are established in working from home, it is important to realize that separate accounts are probably a good idea. I am finding this out the hard way as I go through an income audit in order to get a home mortgage loan. I have to go through all of my statements and painstakingly highlight which were business deposits and which were personal.

Another tip: if you get checks, don’t just take out cash. Instead, deposit the whole check, and then withdraw the cash separately. I’ve been doing things like getting a check for $1,000 and deciding to take $300 cash out. Instead of putting the whole $1,000 in, I get the cash back so that the deposit only looks like $700. Needless to say, it’s not adding up for the accountant. I’ve had to request itemized deposit records from my bank so that the accountant can see the cash I’ve taken out. This is only lengthening the process. We’ve already got one extension on the closing date, and I’m not sure that we’ll get another…