Business versus personal expenses

by | May 1, 2021 | Accounting, Cash Management, Process | 0 comments

While at times it might seem convenient to use your business account to pay for personal expenses and vice versa, it’s not a wise practice. In order to stay above reproach, keep things clean, and avoid legal issues later, it’s best to maintain a separation of church and state, so to speak.

profit first accounting

Mixing your personal and business expenses on your credit cards can become a slippery slope that will make reconciliation very difficult later. Following the virtual paper trail and sorting out what goes where can be like a cat playing with yarn – a tangled mess of lines going everywhere with zero clarity.

Plus, even if you pay every cent you owe back to your business, the records reflect poorly on you and can result in unintended consequences. If you are ever audited, a personal expense on your business account gives the IRS the uncertainty it needs to believe you could be committing fraud by classifying personal expenses as business deductions. Avoid giving the IRS probable cause to dig deeper into your finances by keeping completely separate accounts.

Carry your business and personal cards with you at all times so you won’t have a reason to use the wrong fund. I’m here to help if you want to strategize your spending – or just exchange cute cat photos. Let’s schedule a call.



Lori Peterson


Lori Petersen

Lori Petersen has seen the frustration and loss that landscape business owners experience when they don’t have command of their finances. Growing up, she watched her father work incredibly hard as a contractor. He’d come home late, eat the dinner kept warm in the oven, and do it all over again the next day. But it all came crashing down when he had to close the business and Lori’s family applied for food stamps. The business had failed and all of his hard work was for nothing. 

Today, Lori views every one of her clients as an opportunity to make this right. She firmly believes no one should work as hard as her dad did and not have a profitable business. No family should suffer because business finances were poorly managed. 

Lori has helped hundreds of landscape business owners make sense of their finances, implement proven money management systems and create unimagined profitability for their business. She ensures they experience the return they deserve for their hard labor.

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