Mixing Business and Personal Is A Nightmare For Taxes

Here's something that comes up way too often this time of year, and it's something you need to avoid if you have a single member llc.

Please avoid mixing personal and business expenses in you business account. And if you think, "I'll sort it out at tax time" ........ yeah, you're gonna have to because your tax preparer won't during busy season.

Look, I get it. Sometimes you're in a hurry and use whatever card is handy. But here's what this actually costs you:

1. More in tax prep fees (yeah, we charge you for bookkeeping if you want us to figure it out, that's what figuring it out is... bookkeeping.

2. Missed deductions (if we can't clearly identify it as business, we can't deduct it)

3. Increased audit risk (the IRS loves looking at businesses with messy books)

You'll hear us accounting nerds always say, "Good bookkeepers are worth their weight in gold."

If you need to clean up your books... aka do your books ;)... for 2024, that's totally cool. Let's get that done, plus your tax returns, then you hire a bookkeeper or start doing your books in real time. Cappish?