OK, I know there's a debate about whether you really need a separate checking account for your business. Especially if you're just starting out. The CPA in me will ALWAYS say "Definitely!" That's because I know how to easily track income and expenses separately for my business and my client's businesses. And, I like there to be a completely CLEAN line between personal and business.

But, what if you're just starting out? What if you don't have a business structure setup? What if you're basically working from your home offering a service for clients that you previously offered as an employee? In this case, do you REALLY need a separate checking account? (In other words, you are a SOLE PROPRIETOR)

When you ABSOLUTELY need a separate business checking account and credit card for your business:

You do business as a "DBA". In other words, the name of your business is something like "Kendra's Pet Sitting Service" instead of your own name. In order to get the DBA, you've gone to the county courthouse and registered your new business name there. You will use this name to invoice your clients and your clients will make their checks payable to this business name. You do business as an LLC, S Corporation, C Corporation, or any other legal entity. In order to keep your business structure legally intact and follow the recordkeeping rules, you will need a separate business checking account in the legal name of the business entity.If you don't meet any of the above, you MIGHT want to get a separate business checking account if:

You have steady business income coming in, and don't have to continually transfer money from your personal account to keep your business account going. You understand the difference between personal and business income and expenses. You want to make your business life easier. You're willing to do regular recordkeeping to keep your business separate.Pros of having ONE combined checking account:

All money received from all sources (gifts, personal, employee income, business income) gets deposited in ONE place. At the beginning of your business, you won't have to continually transfer funds from your personal account to cover business expenses. You won't have to try and keep transfer records straight between your personal and business account. The IRS accepts one checking account AS LONG as you keep ACCURATE records. In fact, having a separate business account doesn't AT ALL mean the IRS would ignore the personal account during an audit. You don't have to make an immediate decision when purchasing something at a store whether to use your business or personal account….you may find out later that the purchase can be deducted as a business expense.So, what's right for you? I don't know…it depends on your situation and how much recordkeeping you want to do from the start. This totally goes against what I'm "supposed to" tell my clients.

But, I believe strongly in entrepreneurship, and want everyone to be able to start right away without getting stuck on these kinds of questions.

If you have a great business idea, go for it! And, if you are a sole proprietorship and only have one checking account for now, that's OK.

BUT, please keep ALL receipts for ALL purchases; and make sure you have a record of how each deposit breaks down. At the end of the year, you'll still need to break down your personal vs your business income and expenses for your tax return.

Once you've got your business rolling with a steady stream of income, you'll want to start treating your business like a separate entity regardless of whether you keep your sole proprietor status or not.

RebeccaTervo, CPA is a Certified QuickBooks Proadvisor who helps small biz owners run the money side of their business. Get her free video lesson: "The Top 10 Bookkeeping Mistakes Businesses make and How You Can Avoid Them" at http://products.tervofinancialfitness.com/10-bookkeeping-mistakes