Updated: Feb 16
Are you paying for your Netflix account on your business credit card or swiping your business debit card to buy your kid that adorable outfit? This happens way too much and your putting your business at risk doing it. When you incorporate your business, you are protecting yourself from liability that might arise from your business. When you are paying for personal expenses from your business now you are risking that protection. Lawsuits happen, shit happens, so be smart and protect yourself.
Equally grueling to a lawsuit can be tax season. By separating your expenses it’ll save you money when tax season comes around. Your CPA accounting fees can add up if they have to do all this work for you. Equally taxing, no pun intended, audits do happen, the IRS loves them. Save yourself from fees and penalties, separate your personal expenses from business expenses! Only business expenses should go through your business accounts.