How to Manage Your Bookkeeping When Juggling Multiple Income Streams

Why each business needs its own set of books and how to keep things clean

Running more than one business? Whether you're managing a consulting LLC, a product-based brand, or a growing side hustle, there's one rule that will save you time and stress. Each business entity needs its own books.

If your businesses have different EINs (Employer Identification Numbers), the IRS sees them as separate legal entities. That means you must maintain completely separate financial systems. Mixing income and expenses between businesses can lead to messy tax filings, audits, and even the loss of legal protection.

Each business should have its own:

• Bank accounts

• Credit cards

• Accounting software or files

• Expense tracking

• Revenue recording

Make sure to review each entity's books monthly. Each one should have its own profit and loss statement, balance sheet, and cash flow summary. This helps you make better business decisions and ensures compliance with tax laws.

When tax time arrives, each business files its own return. Keeping things separate makes the process smoother and less stressful.

If you're juggling multiple income streams and unsure where to start, schedule a call. We’ll help you set up systems that keep things clean and compliant.