One of the first things we recommend to any new business owner is to open a business checking account. You would be surprised to see how many sole props and LLC’s co-mingle their business and personal income/expenses.
If you have a separate checking account for your business and only route business activity through it, it makes an audit from the state or federal government significantly easier for you to track down checks, debits and deposits.
In addition, reconciling a business checking account should be done at least once a month. Often times business owners are so busy they don’t recognize when money is taken out of their account without their authorization. If you aren’t balancing your checkbook then there’s no way to know if something has gone wrong with your banking.
In short, always always always have a business checking account no matter what type of business you have. Make sure you only push business activity through that account and reconcile it at least once a month.