09/08/2026
🐄 **Cow Tip Tuesday: When Personal and Business Expenses Get Mixed Up**
You accidentally used the business card for groceries—or paid for business supplies with your personal card.
Now what?
First: Don’t panic! Mistakes happen. The important part is recording the transaction correctly.
💳 **Personal expense paid from the business account:**
Don’t categorize it as a business expense. It will generally need to be recorded as an owner’s draw or distribution. You may also choose to repay the business.
🧾 **Business expense paid personally:**
Keep the receipt and record the purchase in your books as a legitimate business expense, along with the corresponding owner contribution or reimbursement.
What shouldn’t you do? Delete the transaction, guess at a category, or disguise a personal purchase as a business expense.
An occasional mix-up can be corrected. Making it a habit, however, creates messy records and makes tax time much harder than it needs to be.
Keep the accounts separate—and when they accidentally cross paths, make sure your books tell the truth. 🐄📊
*The proper treatment can depend on your business structure.*
