Common Financial Mistakes First-Time Founders Make
Written by Aparna Devalla
Curated by Rubric Financial
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Mixing Personal and Business Finances
- Using a personal bank account for business transactions makes it nearly impossible to produce clean financial statements and creates audit risk.
- Commingled funds can pierce the corporate veil, exposing founders to personal liability for company debts and obligations.
- Open a dedicated business bank account and business credit card before spending a single dollar. Mercury, Brex, and SVB (now part of First Citizens) all offer startup-friendly options.
- Reimburse founders for legitimate business expenses through a formal expense reimbursement process with receipts and documentation.
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About the author
Aparna DevallaCPAHead of Tax & Accounting
CPA and Head of Tax & Accounting at StartupCFO. Specializes in multi-state tax compliance, R&D credits, and GAAP-compliant books for venture-backed startups.
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