Just How Beneficial is Your Business Tax and Accounting Service?

Most small business owners do not realize how far the scope of tax and accounting services can extend by their financial advisors and accountants. Most of the time, small business owners only rely on their accountants during tax season. While tax season is a considerable portion of accountants’ jobs, utilizing their full services and knowledge base is crucial if you want to see your business thrive.

Are Your Tax and Accounting Service Providers Keeping Your Records Accurate?

Accountants offer many important financial services year-round, one of which is bookkeeping. While bookkeeping may seem like a no-brainer, when it is done right, it has the power to change your business drastically for the better. As a business blossoms, financial pressure can take a toll on the owner. Poorly managed resources can lead to big trouble if not checked as soon as possible. Your accountant should help manage your books which can lead to the growth of your business and profit.  

 

Good bookkeeping practices can:

  • Help you save for a new workspace – renting or buying
  • Ensure your business can afford a new hire when needed
  • Guarantee the likelihood of expansion of products and services


Now, let’s take a look at accounts receivable. If your books are not accurately monitored, you might not be paid what you are owed. Some business owners implement late fees and other surcharges depending on the industry; those additional fees might make a big difference in their income. Without proper bookkeeping, you could risk missing out on funds you are regularly used to receiving.

Does Your Accountant Actively Research and Find Funding Opportunities?

A good accountant will help you steer through small business loans. They should be offering suggestions as to how to make your business more likely to be accepted when applying for loans and other funding opportunities. Your advisor will likely assist you not only in creating a solid business plan but in the execution of that plan as well. For example, simple savings and credit checks are good places to start recommended by most advisors.

What About Investments?

Does your accountant help you with investment opportunities as they arise? Maybe you’re interested in stocks. Do you feel you’re getting an adequate amount (if any) of information from your advisor? Most financial advisors have years of experience dealing with stocks and other vehicles of investment; there should be no issue in finding opportunities to make more money by investing, leading to more money in your pocket.

Does Your Accountant Offer Good Feedback?

Your advisor should be able to advise, simple as that. They should offer solutions to increase your profit margin. Additionally, you should expect your advisor to give you relevant information on the progress of your business in relation to other businesses in your area’s market. They should be able to assess areas in which you could improve your business model and increase profitability.

Victoria’s Premier Small Business Accountants

Bumgardner Morrison is the Crossroads number one choice for tax and accounting services. Our team is filled with the best CPAs and financial experts in the area. Our goal is to help make your business the most lucrative it can be while empowering peace of mind. Ready to get started? Fill out this form and let us help you take your business to the next level!

Navigating Finances As a Small Business Owner

Managing finances as a small business owner is no small task. If you have little to no experience managing business finances, the feeling of being overwhelmed and increased anxiety will surely arise. If you are uncareful, making poor financial habits can do irreversible harm to your business. Luckily, there are five practical tips to remember that will help you stay in line and on track to better manage your business’s finances.

  1. Keep Good Business Credit

As a business owner, you’ll want to ensure you stay in good standing with your financial institution, which will open doors to loans with lower interest rates and other perks later down the line. One easy way to keep your credit in the green is by making sure you are submitting payments on time. Lenders are more likely to approve business loans if they see you have a strong history of making payments on time.

 

Another way to ensure good business credit is to only apply for business credit cards as needed. This will also ensure you do not have too many outstanding lines of credit, which can negatively affect your business.

  2.  Monitor Your Credit Reports

Keeping an eye on your credit reports is one of the easiest ways to stay on top of your financial information as a small business owner. You should regularly check your credit to see any errors or inaccuracies in the reports. Keeping your business safe and protected from theft and fraud is imperative as a small business owner. You might be thinking, “Is it that big of a deal? What’s the worst that could happen?” The answer is simple: a great deal of harm can happen to your business if your business accounts are hacked, and thieves successfully steal valuable information or assets.

  3. Look for Areas to Grow

Big name corporations did not become big name corporations overnight. Take the time to examine your income and set funds aside each month for future goals and growth opportunities. Investing in your company will lead to your organization’s development both internally and externally. The extra funds you save for growth opportunities will allow you to invest in your employees and workspace. You’ll be able to do things like putting a deposit down on the building of your dreams without paying out of pocket. Or, maybe you’re interested in sending your managers on a business trip to a leadership conference; that, too, is possible with a little planning and saving. We know your business means a lot to you; why not pour into your business so it can pour back out for what is important?

  4. Create a Budget

Although this may seem like a no-brainer, many small business owners skip over this crucial planning step. Creating a budget will help you realize what is necessary and what can wait. We encourage you to track your expenses over a few months to see where you spend most of your business dollars. Ask yourself if there are ways to trim down or cut back on unnecessary spending. Budgeting and sticking to it is one of the most effective ways to ensure your business will not head into a downwards spiral of debt.

  5. Get Help Before It Hurts

Not everyone is equipped to take on the financial responsibility of a small business, and that’s completely okay! It’s important to ensure you get the help you need before things get too bad and your business is forced into bankruptcy. Protecting the longevity of your business has to be at the top of your priority list as a small business owner; enlisting the help of financial experts to better strengthen the likelihood of financial success will pay off in the long run.

When You’re Ready, We Can Help

Now that you have a good idea of how to better protect your business’s finances as a small business owner allow Bumgardner Morrison to help! With over 70 years as a full-service accounting firm, we are the area’s leading financial experts. We can help you meet your fiscal goals as a small business owner while offering peace of mind that others can’t. Contact us today and let us help you keep your business on track to a better financial future!

 


So You’ve Started a Small Business

Starting a small business is no small feat, no matter how much experience you have beforehand. There are many new challenges to face as a small business owner, one of which is finances. Most, if not all, small business owners have hopes of having a high profitability rate. However, to get to that point, you must consider all the factors that play into running a financially successful business. This is why experts suggest using accounting services to help plot a course to financial success. There are many benefits to using small business accounting services. After reading this blog, you should have a good idea of what accounting services can truly do for you and your business.

 1. Accountants Save Valuable Resources

As a small business owner, especially in the first six months of business, you have a huge workload. From ensuring your products and services are top-notch to dealing directly with customers and employees, your plate is almost always full. Using small business accounting services allows you to free up some of your time; you won’t have to worry about your books because someone is already looking after them. The last thing you want is to be tired and stressed out from working a 12-hour day and have to review your bookkeeping for the month. Mistakes are bound to be made, and if you’re not careful, they can cause serious problems for you and your business. Time is a hugely valuable resource for you as a business owner. Invest yours wisely.

 2. Added Security is a Good Thing

Professional accountants are trained to find hidden bookkeeping errors most would overlook. The likelihood of catching fraud or theft too late is drastically reduced when you use accounting services. Many accountants are familiar with strong, trusted software to help reduce the risk of getting hacked and can refer you to these platforms to ensure the security of your business. Additionally, it’s your accountant’s job to know the rules and regulations of your state and the federal government regarding your business’s financial realm; this will safeguard you from making a mistake and owing Uncle Sam big time.

 3. Tax Time Becomes a Walk in the Park

Tax season is a huge deal, business owner or not. By enlisting the help of small business accounting services, you can eliminate the possibility of making costly mistakes during tax season. Your accountant will advise you and file all the necessary paperwork to keep you in compliance with the government regarding your business. The best part of it all: if you’ve been using your accountant for a while, they should be quite familiar with your business’s information, making tax season a breeze. The penalty for tax issues, regardless of if they were honest mistakes or not, can lead your business to bankruptcy. Hire a small business accountant and avoid this at all costs.

 4. Expert Advice When You Need It

We all need financial advice from time to time, and who better to assist you than your business accountant? Your accountant can help you widen your knowledge about the ins and outs of your business’s finances and help you gain valuable insight into the world of bookkeeping. Many accountants are happy to help you understand the financial aspect of your business if you have any questions or concerns regarding your books. Feel free to give us a call and let us elaborate on our findings – doing so will benefit your business as well. You’ll be able to do your homework and offer solutions to in-house issues that may arise.

 5. Honest Evaluation of Your Business

Your accountant can do far more than just file your taxes, they can provide you valuable insight into your business and the market you are in. You want someone in your corner that will be honest with you about the way your business is stacking up in comparison to the competition in your area. Your accountant can conduct field research to determine how well you are performing and let you know how you can improve your strategy to increase profits. This is especially important if your business sells goods or services. You should want to know if you are under or overcharging for your products and services and make adjustments based on the expert opinion of your accountant.

What Are You Waiting For

Utilizing small business accounting services is widely beneficial. From saving resources such as time to providing evaluations of your business, there are plenty of reasons why small business owners should use an accountant. If you’re ready to take the next step towards improving your business’s financial status, contact your friends here at Bumgardner Morrison! We’ve helped thousands of small business owners reshape and revitalize their finances; contact us today, let us help you reach your potential, and ensure your financial future!

Avoiding Business Loan Request Denial

The last thing any business owner wants is for their business loan to be denied. Business loans are essential for starting or maintaining a business; being denied funds can be daunting for even the most seasoned business owners, so you can imagine the burden it places on small and first-time business owners. However, by knowing the basics of what leads to denial, you can better prepare and strengthen your business application’s chances of success.

Length of Time in Business

As a new business owner, you will want to ensure you have sufficient time as a business. Most lenders are known for requiring a minimum of six months to a year (one year plus in some instances) as a functioning business before considering approval for a business loan. Time requirements vary by lender, so it is important to make sure you are researching this before approaching a lender. 

It is important to note your financial records will have to meet certain requirements based on the financial institution you are applying with as well. Having met the minimum time requirement does not ensure an automatic approval.

Insufficient or Bad Credit History

Like most other loans, a credit check will be required with most financial institutions when applying for a business loan. Lenders want to know they are distributing funds to responsible borrowers, thus ensuring they will receive payments when they are due and not drastically late. Again, newer business owners might not have a sufficient amount of credit built up yet, resulting in a denial due to the inability of the lender to look at your payment history. 

You’re probably wondering how to build credit as a first-time or small business owner, right? Here are some practical steps from the U.S. Small Business Administration that can help:

  1. Choose the proper business structure – LLC, LLP, or corporation
  2. Obtain a Federal Tax ID Number – your nine-digit EIN will be used for filing tax returns, applying for permits, and more 
  3. Open a Business Bank Account – you can do this only after you’ve received your EIN; this separates business and personal expenses.

Pre Existing Debt Amount

It is important to make sure you are making payments towards any existing loans. Lenders will look at how many loans you have applied for and your ability to repay the loan. The higher the amount of debt you have, the less likely you are to be considered for a business loan. To keep your business debt at a minimum, you should be keeping track of the lines of credit you currently have. Make sure to do your research before taking on a new line of credit; audit your business to ensure you can cover additional monthly payments.

Risky Industry

Lenders are less likely to approve loans for business in an industry deemed “risky.” Regardless of profitability, you can be denied a business loan if your business falls into the risky category. Several outside factors can lead to your industry being categorized as risky. Overpopulation in the market can lead to your business being considered risky. For example, if hardware stores are on every corner, lenders are less likely to approve a business loan because the market is overwhelmed with that same type of business.

Let Us Help

Applying for a business loan can be scary, and being denied can cause unnecessary stress and frustration. Luckily, your friends here at Bumgardner Morrison are here to help alleviate any stress that comes along with applying for a business loan. Before you start, contact us! Our team of CPAs and financial management experts are ready to get you on the road to an approved business loan. Call us today at 361-575-0271 for more information!

A Guide to Estate Planning, Wills and Trusts for Families

One of the most important things you can do is start preparing an estate plan and instill a will or trust for your family. A common misconception is that you have to have a lot of money or own a bunch of assets to do this, but you don’t. Getting ahead on estate planning can alleviate the burden and stress from your family, as well as ensuring everything transfers to the people you intend and knowing you have complete control over your assets. 

What is Estate Planning?

Estate planning is taking all of your assets, including your home, car, bank accounts, furniture and anything else you own, and providing instructions for who you’d like to receive each item. Sounds easy enough, right? 

 

Many people think they aren’t old enough to create an estate plan – that you have to be retired, or on the brink of death to even consider what you’re going to do with your assets, and this can lead to complications. You might not have an estate plan, but your state will decide what happens to your assets and how to care for you or distribute your estate if you become too disabled to make decisions for yourself, or if you pass before planning. 

 

This is reasoning enough for you to consider planning for your assets to be taken care of. After all, most people want the control of dealing with their own property, not leave it up to the government. 

Where to Begin: A Living Trust or Will?

A living trust is one that takes effect while you are still alive. It can be revocable, meaning it can be altered at any time, or irrevocable, meaning that it’s permanent.

 

Trusts are commonly used in estate planning to avoid probate, a legal process that involves proving a will. It’s not a cheap process, so a trust is a great workaround to the system. Another way that a trust saves money is that it helps minimize the taxes that are associated with estates. The upfront fees are a bit more expensive, but it ends up saving you and your family money in the long run.

 

A will helps to express your wishes on a document, and only becomes active after passing. It is used for the distribution of possessions, as well as naming guardianship of minor children, something a trust cannot designate. There is no way to skip probate with a will, which is why trusts have become increasingly more popular over the years, especially for those who want to maximize the wealth for their heirs.

Peace of Mind

If you are considering a trust or a will, or even both, your best option is to talk to a professional about which is right for you. Working through this process sooner rather than later can prevent even more money from being spent down the road, and can eliminate the consequences involved with not creating one at all. Thinking and talking about death isn’t easy, and many people like to avoid it. To ensure your peace of mind by knowing everything is taken care of, reach out to Bumgardner Morrison where we can provide you with the knowledge and guidance you need to make a decision on what estate planning route you should take. 

7 Financial Tips to Remember for Small Business Owners

Running a business is an incredible venture that only a select few people choose to take on. When owning a small business, it can be easy to get distracted by your sales, promoting your business and creating a name for yourself that finances tend to get stuck on the back burner. Before you know it, it’s too late and the amazing business you built from the ground up is tanking because you didn’t follow a financial plan. Our goal at Bumgardner Morrison is to help keep small businesses alive and thriving, which is why we have put together a list of tips to help your business stay successful.

Keep Tabs on your Budget

Creating a budget plan is one of the first and most important things you can do to help your business. Anyone can create a plan, but sticking to it is the hard part, especially when you’re in charge of everything and you can choose to cut corners if you want or feel like you need to. Don’t cut corners, though. Keep up with your budget, follow it, and make amendments to your budget as you start to generate more income and invest in your business.

Automate Bills

As most people do with their personal bills, automating the bills for your business can greatly increase your productivity, as it can get pretty time consuming. In addition to saving time, you are also eliminating the fact that you might not remember every single bill that needs to be paid. Forgetting just one bill can lead to late fees and penalties against your credit. Make sure to keep track of all your payments and even schedule reminders on which days of the month each bill comes out so you can account for it.

Protect Yourself Against Fraud

Yes, even your business can become a victim of fraud so it’s important to be proactive about keeping your data safe. To make sure you, your business, and your client’s information is protected, make sure that your antivirus software is always up to date and train your employees to never open unidentified emails. Check your credit reports regularly for unauthorized use or transactions. In today’s online driven world, hackers are becoming better and better at swiping your information and going seemingly unnoticed. 

Don’t Be Afraid of Loans

Many people are afraid of taking out loans, but it’s because most people weren’t taught how to utilize them the way they are meant to be used. Loans can help you secure more equipment as you grow your business, therefore generating more cash and, in turn, the ability to pay off your loan. Determine the amount for a loan that will help you succeed without burdening you – take just what you need and nothing more. 

Spread Out Tax Payments

Taxes are an inevitable part of owning a business, but you actually don’t have to pay all your taxes upfront each year. You can split your tax payments up quarterly or even monthly, so you are paying less, more frequently, instead of a large amount all at once. Treat it as one of your monthly expenses to make it just as easy as the rest of your bills!

Create a Cash Reserve

Again, just like you personally need an emergency fund, your business needs one as well. This is called a cash reserve, and you are essentially putting money away to help for a “rainy day” if you will. Take into consideration that businesses ebb and flow, it might get slow during some seasons, or a piece of vital equipment might need repairing, and an emergency fund can help ease the burden of these inconveniences. 

Seek Help From an Accounting Professional

The great thing about finances is that, if they overwhelm you, you don’t have to manage them alone. It might be the best decision for your business to invest in an Accountant to help you navigate the financials. After all, they are the experts!

At Bumgarner Morrison, we are here to help you with your finances as a small business owner. We’ve been in the accounting business for more than 70 years helping people like you succeed. We offer bookkeeping, reporting, planning, and auditing services as well as advice to help you manage your wealth. Contact our professionals today!

2021 Tax Season: What Has Changed for Small Businesses

Need to file small business taxes this year? You might not know where to start.

 

You aren’t the only small business owner who needs some guidance. The SBA reports that there are more than 30 million small businesses in the U.S., many of which feel they don’t know what they’re doing when filing taxes.

 

Even if your business has been operating for several years, 2021 isn’t an ordinary year. The COVID-19 pandemic has resulted in some unforeseen changes regarding small business taxes. When you file with a plan, you can use these changes to your advantage.

 

Before COVID-19, the most recent major changes came in 2018 because of the Tax Cuts and Jobs Act. As 2021 rolls around, businesses will have to digest these changes and the new ones made because of COVID-19. 

 

Read on to learn more about what you should know about and how to prepare for the 2021 tax season as a small business owner.

What Are the Types of Small Business Taxes?

Small business taxes will differ based on the structure of the company. The five primary ones to familiarize yourself with are:

  1. Income: All businesses except partnerships file annual income tax returns.
  2. Self-employment: You will pay this tax to cover your Medicare and Social Security obligations.
  3. Employment: If you have employees, you will have taxes related to their Medicare/Social Security, federal unemployment, and federal income taxes.
  4. Excise: Certain products like alcohol, tobacco, and fuel carry an excise tax.
  5. Estimated: Some businesses will have to pay quarterly estimated taxes if they don’t have sufficient amounts withheld.

What Changes Are Specific to 2021?

The U.S. government took drastic measures to lessen the coronavirus’s impact on the economy. Here are some new tax programs and changes it created:

  • Coronavirus Aid, Relief, and Economic Security Act (CARES) Act: The CARES Act launched the Paycheck Protection Program (PPP). This is an emergency loan that granted billions of dollars to small businesses. Any money you received through the PPP is a forgivable loan. It is not considered taxable income for 2020 as long as you used the money to fund rent, utility payments, and payroll,
  • Business interest expense deduction increases: The CARES Act increased the allowable business interest expense deduction from 30% to 50% of adjusted taxable income.
  • Economic Injury Disaster Loan (EIDL): The SBA (Small Business Administration) expanded the EIDL program to help businesses recover from economic slowdowns and mandatory shutdowns caused by the virus.
  • Employee Retention Tax Credit (ERTC): The ERTC was created to help businesses retain their staff members. Eligible employers can receive a tax credit equal to 50% of qualifying wages, up to $10,000 per employee.
  • Families First Coronavirus Response Act (FFCRA): The FFCRA required some small businesses to provide leave for employees who were affected by the virus. If a business made this kind of payment, it is eligible for tax credits of 100% of the leave cost.

Are There Any Previous Tax Changes I Should Remember?

The 2018 tax reform law produced some important changes you should be aware of:

 

Deductions for Pass-Throughs & Corporations

The Tax Cuts and Jobs Act of 2018 provides a 20% deduction for pass-through businesses (companies structured as partnerships, sole proprietorships, limited liability companies, and S-corps).

 

Net Operating Loss Changes

Net operating losses (NOLs) arise when a business’s tax deductions are higher than its taxable income. 

 

You can no longer carry NOLs back for two years. Rather, you can apply them for an indefinite amount of time going forward. 

 

This change has encouraged businesses to take risks, spend more money, and contribute to the economy’s re-growth.

 

First-Year Bonus Depreciation

The 2018 reform changed the first-year bonus depreciation deduction to 100%.

 

This means that a small business can deduct the full amount of equipment and property purchases instead of writing them off as portions of their expenses. As a result, the company will have more money upfront to hire workers or invest in the company.

Will There Be Deadline Extensions in 2021?

As you probably know, the U.S. government granted deadline extensions for companies filing in 2020. As of right now, it is unclear if there will be similar extensions granted in 2021.

Tips to Remember as You File in 2021

A certified public accountant (CPA) can certainly help you file properly. However, you shouldn’t be completely out of the loop. Here are some tips to keep in mind:

  • Think about taxes year-round: Don’t wait until the last minute to start preparing your taxes. This can result in more complications and fewer opportunities to save money.
  • Stay on top of law changes: Educate yourself on the latest legal changes regarding tax filing. You can use your knowledge to ensure your CPA is doing the best job possible.
  • Never make assumptions: Don’t assume that the government will enact certain policies or pass tax breaks.
  • Incorporate in the right state: It may be advantageous to incorporate your company in a different state than you run it in. States like Wyoming, South Carolina, and Colorado are advantageous places to file in.
  • Don’t aim for a refund: If you get a refund, it means you overestimated the amount of taxes you paid. This money could have been reinvested back into your company.
What Tax Deductions Can I Make as a Small Business Owner?

Wondering what tax deductions you can make for your small operation? While not all-inclusive, this list gives you a good idea of what deductions you can make:

  • Rent
  • Home Office
  • Advertising
  • Utilities
  • Employee Salaries
  • Travel

Some expenses will require some planning. For example, if you use a vehicle for company purposes, you can itemize specific costs or follow the simple deduction of 57.5 cents per mile for 2020.

Conclusion

There’s no denying that 2021 is a confusing time for business owners and tax policies as a result of COVID-19. As a small business owner, you can protect your company by staying on top of the U.S. regulations regarding taxes this year. 

 

Remember that the (SBA) and Internal Revenue Service (IRS) are the most reliable tax resources for small companies. These resources can help you understand your tax obligations. 

 

However, you should always work with a certified public accountant (CPA) to file your taxes. This way, you will ensure that you pay the right amount and comply with the most up-to-date regulations.

A guy hands over a credit card to a store clerk.

Should You Use Your Business Credit Card for Personal Expenses?

Keeping your business and personal finances separate is age-old advice. It’s sometimes easy to blur the line, though, especially for small business owners and independent contractors. Most people with a business card wonder if it’s really such a bad idea to use it for personal expenses.

There are some advantages to charging personal expenses on your business card, but there are also a number of risks. If you’re wondering whether you should use your business card on something personal, you should understand how business and personal cards differ and what may happen if you violate your card agreement.

Pros of Personal Spending on Business Card

One of the main reasons people put personal charges on their business card is because it protects their credit score. Most credit card companies only report business card activity to business credit bureaus. You don’t have to worry about your personal score dropping unless your business account becomes delinquent. Making purchases on your business card can help you protect your own credit score by keeping your utilization low.

 

Business cards often have higher rewards, bonuses, and incentives. If you make a lot of purchases, this can add up. Business cards often have higher credit limits, too. The benefits of the business card may be much better than a personal card if you don’t have a high credit score.

Cons of Personal Spending on Business Card

The cons of personal spending on your business card definitely outweigh the pros. This can lead to messy finances and complicated taxes. You’ll have to comb through your credit card statements to separate all of the business and personal purchases, which is tedious and time-consuming. If you overstate your business expenses on your taxes because they’ve been mixed up with personal spending, you may increase your risk of an audit.

 

Most business cardholder agreements prohibit personal spending on the card. If the lender discovers that you broke your agreement, they may cancel the card. Some business cards have higher fees and interest rates, too.

 

Business cards have fewer protections than consumer cards, so it’s much safer to use a personal card whenever you can. The Credit Card Act of 2009 outlined many consumer protections, but not all of them apply to business cards. Your credit card company can raise your interest rate and lower your credit limit at just one sign of financial hardship. They also can charge over-limit fees, and there’s no cap on late fees.

 

Mixing business and personal spending can even lead to legal issues. If you run a corporation or limited liability company, you aren’t personally responsible for your business debts. Typically, someone who sues your company can only recover from your business assets. However, if you’ve used your business funds for personal expenses, the court may open up your personal assets for recovery.

What You Should Never Charge to Your Business Card

It’s very difficult for a credit card issuer to tell whether a purchase you make is for personal or business reasons. However, there are some purchases that are more likely to land you in hot waters than others.

 

You should not put extra personal expenses from a business trip on your business card. Many people like to add a few extra days to their trip just for fun, but putting these charges on your business card is a slippery slope. The expenses can quickly add up.

 

Be careful with client entertainment as well. This is a valid expense within reason, but dinners every night or multiple trips per year is excessive and may look suspicious to your credit card company.

 

Try to avoid using your business card for big purchases, too, especially personal ones. Although your business card may have a lower interest rate than a personal card, it’s still much higher than a loan. Big purchases can accrue a lot of interest if you carry the balance for more than a month.

Should You Charge Your Business Card for Personal Spending?

To be safe, you should not use your business card for your personal expenses. Occasional purchases probably won’t raise any red flags with your credit card company, but it’s easy for the personal spending to get out of control.

 

To avoid impulse purchases, you should have clear boundaries for what does and doesn’t count as a business expense. Keep your business card separated from your personal card in your wallet so that you don’t grab it accidentally. Each month, review your credit card statement carefully to make sure there weren’t any personal purchases.

 

When you put personal expenses on your business card, you complicate your taxes, violate your cardholder agreement, and put your limited liability status in jeopardy. To keep your finances safe and organized, it’s best to keep your business and personal spending separate.

Final Thoughts

At Bumgardner Morrison, we’re here to assist with your accounting service needs. If you have questions about your business credit card spending or are looking to get your business finances in order, contact us today to schedule a consultation.