Why it’s important to separate business and personal expenses.

It’s so easy as a business owner to mix business and personal expenses. A simple swipe at the pump with the business card or maybe using personal money to buy something for the business- after all you can always just pay yourself back with a owner withdrawal. Doing these small things can actually cause you big problems- leading to tax trouble, legal risk, and financial confusion.

When business and personal spending overlap, the IRS sees red flags. You could lose deductions, misreport income, and face extra scrutiny- all avoidable with clean books.

Mixing funds can “pierce the corporate veil,” erasing your legal protection. That means your personal assets- home, car, or savings- could be at risk.

Blending personal and business expenses also clouds your cash flow, confuses profits, and makes bookkeeping costly too. Keep business expenses truly separate!