“Oops! I used the wrong card. Oh well...I’ll just reimburse the business later.”
"I took a friend, who's also my client, out to dinner for her birthday - that's a business expense, right?"
"I used my credit card for our small business, and now my personal credit is ruined."
Sound familiar?
At inDinero, we've worked with thousands of small businesses, and the messiest and most expensive mistake we've seen entrepreneurs make is commingling personal and business finances. While some new entrepreneurs are ignorant about best practices, others ignore the cries of their accountants and give in to bad habits. In the end, those who blur the lines between their business and private financial lives suffer the consequences. During the month of December, we'll be releasing a series of posts about best practices, FAQs, and topics educating businesses about separating their finances.
For any business owner or aspiring entrepreneur:
- Best Practices: The Most Common Offenders - Meals/Travel/Entertainment
- Best Practices: Avoiding cash, building business credit, and setting strict budgets
- Best Practices: What really matters come tax time
For the seasoned comminglers:
- Why Shouldn't I Mix Personal and Business Finances?
- How do I untangle my finances?
For sole proprietors:
- Thinking of deducting your home office or your car? Learn how to do it right.
- Best Practices: Sole proprietors and one-man operations
Andrea B
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