It usually starts with something like, "I know I probably should have done this a long time ago…" And then they tell me that their business income runs through their personal checking account. Their business expenses are scattered across two or three personal credit cards. And come tax time, they — or their bookkeeper — spend hours trying to untangle what was personal and what was business.

If that sounds familiar, I want you to hear this without any judgment: you are not alone. This is one of the most common financial habits I see in small businesses. But it is also one of the most important to correct — and the sooner, the better.