ABSTRACT
Creative entrepreneurs must understand the importance of separating business and personal finances. Once the business is established, separating the creative entrepreneur's business financial transactions from personal finance becomes imperative. A personal relationship with a business advisor at a community bank can provide the entrepreneur with expert advice on how to handle financial issues. The balance sheet is a picture of the financial standing of the business in one moment in time. Almost all creative entrepreneurs will need to process credit card payments, such as Visa and MasterCard. Every individual has a credit score which is provided by credit rating agencies. Cash accounting records money as it is received from any sales, and all expenses are recorded as money is paid out. The income statement includes both the business's revenue and its expenses and how the change is over a specific period of time. Additional funding from banks or investors may be needed for further expansion of the company.
