Handling Business Expenses Paid with Personal Credit Card

When running a small business, it's not uncommon for owners to occasionally pay for business expenses with a personal credit card. However, it's essential to handle these transactions correctly in your business's financial statements for an accurate tax filing.

Why Move Expenses from Personal to Business Account?

The primary objective is to include all business-related expenses in your business's financial statements. These statements, specifically the income statement and balance sheet, are essential for your tax preparer when it's time to file taxes.

If you pay for business expenses with your personal credit card and don't transfer these expenses into your business account, they won't be included in your business's income statement. Consequently, your tax filing wouldn't contain these expenses.