It’s time to separate work and play…business expenses

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It’s Time to Separate Work & Play…Expenses

Level up your entrepreneur game by keeping your business and personal finances separate.

Was that cab I took the one where I went to that meeting across town? Was it the one I took home from the grocery store? No, wait. It was when – well, now I don’t remember.

For tax purposes, and for personal sanity, it’s a good idea to keep business transactions and personal ones separate. This is where you should consider maintaining a separate debit or credit account. Because when it comes time to review expenses, it’s ideal to keep hair pulling to a minimum.

Personal Account versus Business Account Lyft ride to date-10.00 dollars versus Lyft to meeting-10.00 dollars Lamp for home- 27.00 dollars versus Lamp for office- 27.00 dollars Lunch with mom-15.00 dollars versus Lunch with client- 15.00 dollars

There are some expenses we don’t want to relive, and going over the last 30 cups of coffee probably makes that category. Sure keeping one account for a while might work, but in the long run, keeping business expenses in a different account will save you from so many headaches.

Remember This: Opening up a separate account for business transactions will take the guesswork out of your payment history.

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author-nextdoor-curtThis tip comes from Curt Mastio. Curt is an Entrepreneur, Accountant, and Founder of Founder’s CPA. Hit him up with questions on best practices for keeping business expenses organized at @FoundersCPA on Twitter.


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