EEW Rule #2

Yes, we skipped Rule #1

Everything Every Week Rule #2:

Use Two Separate Checking Accounts for Your Business.

One exclusively for receiving income.

And one exclusively for paying expenses.

Rule #2 has its origins in totally real ancient writings written over the centuries by merchants of yore (you may have seen another such passage in The Creation of Bookkeepers).

Rule #2’s deets are laid out in the following totally real verses:

And Your Business Shall Have 2 Checking Accounts

The first shall be named INCOME; and of it you shall say, “I will never spend money out of my INCOME account, because it is for INCOME to come IN to. That is why I have named it INCOME.”

Its debit card you shalt cut into pieces and scatter among the four corners of the earth, for never must you accidentally grab the wrong card at the gas station pump; and its checkbooks you shalt never order, for never will there be a justification to write a check from thine INCOME account.

The second account shall be called Operational Expenses, or OPEX for short; and of this account you shall say, “I never deposit money I earn into my OPEX account, because it is for my OPerating EXpenses to come out of. And that is why I named it OPEX.”

Its debit card you shalt preserve and keep always; and its checkbook you shalt in fact order, though rarely use… unless you are over 50.

In short: Use one bank account to receive all income and another to pay all expenses.

So, you will fill up your INCOME account with money earned, but will leave your OPEX account totally empty, because none of the money you earn ever lands there.

And how are you supposed to pay OPerational EXpenses for your business out of an empty OPEX account?

Great question! We will fill it up with Everything Every Week Rule #1, coming next week.