Mixing Business and Personal Expenses

How Mixing Business and Personal Expenses Turns You Into a Tax-Time Tragedy

“Look, it’s all my money anyway,” you say, buying a $7 latte with your business card while also paying your Netflix bill with your “company” debit.

Yes, it’s your business. But mixing personal and business spending is the gateway to audit hell.

Here’s why it matters:

• IRS Red Flags: Mixing expenses makes it look like you’re hiding something—even if you aren’t. And trust me, the IRS doesn’t need much to start sniffing around.

• Missed Deductions: When everything’s in one pot, your accountant has to guess what’s deductible and what isn’t. Spoiler: they’ll guess conservatively.

• Nightmare Bookkeeping: Come tax time, you (or your poor accountant) will have to sift through every Amazon order and explain why you bought 37 pool noodles.

Instead, open a separate bank account and credit card for the business. Even if you’re a sole proprietor, it helps you:

• Track spending cleanly

• Make bookkeeping faster

• Look more professional

Bonus: Having clean business records makes applying for loans, grants, or even selling your business way easier.

✅ Funny but helpful tip: If your business bank account thinks your dog is an “office assistant,” we need to talk.