Separating personal and business expenses

Keep your business and personal cards and accounts separate.

Make sure you keep your business and personal bank transactions separate. This includes recurring payments and the card you pull out when you’re paying for anything. Keep business credit and debit cards for business expenses; personal expenses should come out of your personal account. 

If you always keep your business and personal expenses separate, your bank statements are an exact record of your business.

What about credit card points?

Personal credit cards score you more points, but they complicate the record-keeping process. We recommend getting a company credit card, even if the points program might not look as good.

If you must use a personal credit card (i.e. you can’t get a credit card for the business), then designate one personal credit card to be used exclusively for business expenses.