When business and family money get tangled up

If you run a family business, you’ll know how easy it is for the lines between business and personal money to blur. One minute you’re paying wages, the next you’re dipping into the business account to cover a family bill, or you’re signing the family home up as security for a business loan.

That overlap might feel normal, but it can create hidden risks - not just for the business, but for the family’s long-term wealth as well. When everything is tangled together, it’s harder to see whether you’re building a strong foundation for the future or just treading water.

Here are a few simple, practical ways to get back in control:

1. Keep things separate

When business and family money run through the same account, it’s nearly impossible to know what belongs where. One week the business looks flush, the next week it’s drained because the mortgage and school fees came out.

A cleaner approach is:

• Have a dedicated business account for income and expenses.

• Pay yourself a regular wage or drawing so family bills are covered consistently.

• Avoid using business funds for personal spending

This makes it easier to see how the business is really performing, keeps the family budget predictable, and means fewer headaches at tax time. Plus, your accountant will love you for it!

2. Make money visible

A lot of family stress comes from not knowing where the money’s actually going. You think there’s plenty sitting in the business, but by the time the BAS, wages and suppliers are paid, there’s not much left for the family budget.

One simple fix is to put it all in plain sight. A quick monthly snapshot - even something as simple as one page in Excel or Xero - that shows:

• How much came into the business,

• What went out, and

• What’s available for the family.

You'll go from being frustrated about not knowing “where the money went” to having a calm, clear headed understanding, because you'll be able to see the numbers. It takes the guesswork out and keeps everyone on the same page.

3. Think beyond today

How you manage the overlap between business and family money shapes long-term wealth.

Most family businesses don’t survive to the next generation - not because the business fails, but because the handover isn’t planned. I’ve seen siblings fall out over control and kids left unprepared to step in.

Future planning, protecting assets, and building wealth outside the business all help make sure the business supports the family, and not break it up. Even starting the conversation at the dinner table makes a difference - and bringing in an adviser can keep it fair, well-planned and on track.

Why this matters

Running a family business while trying to build generational wealth isn’t easy. But it’s worth it if you want to secure your family’s financial future.

By separating the money, making it visible, and planning ahead, you can turn the overlap between business and family from a risk into a real strength.

That’s exactly what we help families do every day - stay on top of the business while building lasting wealth and security for the people who matter most.

More soon.