Not only does this expose the business to several risks, it also creates a bookkeeping problem by failing to account for business expenses adequately.
Although it can be quite an inconvenience for sole proprietors to carry two sets of debit and credit cards or switch between bank accounts when transacting, it is a necessary discipline to ensure that financial records are accurate and to get a clear view of how the business is performing, says Kenneth Matlhole, FNB Business spokesperson.
He unpacks a few risks associated with commingling funds:
If certain transactions are not reflected in the business account, the bank won't have a complete understanding of the business, which may be detrimental to the credit application.
Matlhole also cautions against borrowing funds from a business for personal expenses, with the intention of re-funding the account. The situation can easily get out of hand leading to cash flow constraints.