Should I Separate My Business and Personal Finances as an Entrepreneur with ADHD?
If you’re an entrepreneur with ADHD (which you obviously are, because you’re here 😉), your finances can feel chaotic, stressful, and overwhelming. I also suspect that you’re here because you’re mixing business and personal expenses, which leads to other challenges like scrambling at tax time. This isn’t because you’re “bad with money,” it’s unfortunately how ADHD affects executive functions like planning, organization, and focus. Partner that with the fact that most of the tips and education on managing money are geared to neurotypical individuals, and you’ve got a dangerous combo!
But, the good news is that you’re here, which means you have found a financial coach whose main focus is helping entrepreneurs with ADHD. I hope you’re ready for guidance tailored specifically to you!
Let’s dive into the question at hand: Should you separate your business and personal finances? The very short answer is YES. But you probably already know that. Because our brains need to deeply understand WHY we should do something, and specifically why it makes sense for us, I’m going to make that happen too!
Separating your business and personal finances isn’t just a nice-to-have; it's essential. For ADHD entrepreneurs, it’s one of the fastest ways to reduce stress, gain clarity, and help you grow your business.
Why ADHD Entrepreneurs Should Separate Finances
1. Get a clear picture of your business at a glance
When personal and business money are mixed, it’s impossible to know if your business is truly profitable. Separate accounts give you clarity so you can see where you stand without having to do so much mental math it feels like you’re in the Olympics! It will help you make informed decisions, spot issues early, and invest in growth confidently.
2. Simplify taxes
Mixing expenses makes tax time a nightmare. With separate accounts (and being diligent about spending from a business account), you’ll know exactly what’s deductible, what’s income, and what you owe. That clarity reduces mistakes and stress AND makes adding a bookkeeper to support you much easier.
3. Pay yourself consistently
ADHD brains often make spending decisions based on bank account balances. Having everything mixed together means those decisions are impacting your business and personal finances, but even more importantly, your ability to start paying yourself a consistent salary. Separating finances makes the next steps of setting up a system to pay yourself regularly and creating personal financial stability much easier.
4. Reduce overwhelm
Having structured, separate accounts lowers decision fatigue. ADHD entrepreneurs thrive when finances are simple, visual, and easy to understand. You might think that one account makes things simpler, but trust me on this one, that is not the case. In fast, I encourage my clients to set up multiple business and personal accounts to avoid as much future mental math as possible.
Ready to Separate Your Finances? I’ve got you!
Open a separate account for your business
Depending on where you live and your business structure, it may be possible to use a separate personal account. If it’s all in one personal account now, using a new personal account to separate things is a significant improvement! Online banking accessibility is an important thing to consider.Redirect your income
Take a minute to write out the different paths that income finds its way to you, and then work through the list to make sure it will all go to your new account. For my fellow Canadians, don’t forget to adjust your e-transfer autodeposit.Update your expenses
Review your business expenses and make any changes so that they will come out of your new account. I don’t want to add more to your plate but, if you need a credit card for some of your expenses, having one dedicated to business spending is also super helpful.Pay yourself
You’re probably saying ‘duh!’ but stick with me on this one! Now you’re paying yourself every time any money comes into your business. Once you have things separated, this is something I encourage you to be more intentional with. By taking some time to understand your personal expenses, it can help you get clarity on how much you need to pay yourself from your business. My free budget tool can help you with that!In 30 days
You ARE going to miss things when you go through steps 2 and 3; it’s inevitable. Set a reminder to help you look for things you may have missed by reviewing your bank (and credit card) transactions from the accounts you were using.Come back for more!
I’m actively resisting adding 10 more steps here because I don’t want to create a different kind of overwhelm. So come back to review other blog posts about next steps, like saving for taxes, putting yourself on a consistent salary from your business, and so much more! Maybe that’s a monthly reminder that includes my website link, or signing up for my email list, whatever you need to keep taking small actions with your business and personal finances. ♥️
Benefits You’ll Notice Quickly
Better understanding of business profitability
More intentionallity with business and personal spending
Mental clarity and focus
Is it time for you to work with a financial coach?
As a financial coach who specializes in ADHD entrepreneurs, I help clients:
Pay themselves consistently, even with variable income
Automate as much as possible to reduce stress and forgetfulness
Gain clarity on business and personal finances
Create systems that are ADHD-friendly, simple, and effective
You DO NOT need to be in a certain place with your finances before we work together. I can help you where you are right now, no matter where that is. If you’re ready to stop feeling stressed, confused, or overwhelmed by your money and explore working with someone who understands you and your brain, book a free consultation with me and let’s see if we are a good fit to work on your money together!
