Keeping Business and Personal Expenses Separate

Keeping your business and personal finances separate is an important part of staying organized, making bookkeeping easier, and getting a clearer picture of how your business is really doing.

Start with separate accounts. Open a business bank account and, if possible, a business credit card. This makes it much easier to track business income and expenses.

Keep your receipts organized. Save receipts and make a habit of recording expenses regularly. A quick weekly review can help prevent paperwork from piling up.

Pay Yourself Properly. Instead of regularly transferring money from your business account for personal purchases, establish a consistent method for taking money out of the business. The appropriate method can depend on your business structure, so it’s worth discussing with your accountant.

Avoid mixing expenses. Try not to use your personal credit card for business purchases—or your business account for personal expenses. Keeping things separate makes bookkeeping and tax preparation much simpler.

Know what you're spending. Reviewing your business expenses regularly can help you spot unnecessary costs, forgotten subscriptions, or opportunities to save.

At Reschke Fritz LLP, we can help you keep your business finances organized and make tax time a little less stressful. Have questions about your business finances? Contact Reschke Fritz LLP—we'd be happy to help!