Tip #4: Get reimbursed
Have you been reimbursed for expenses you’ve paid personally?
Commingling business and personal funds is never a good idea. It can jeopardize the legal and tax status of your business.
To avoid commingling of funds, it’s best to pay business expenses with business funds and personal expenses with personal funds.
There is one exception to this and that is business expenses paid by you personally. It is a common business practice for a business to have a policy in place to reimburse employees or owners for certain expenses. Common examples include lunch with a client or travel for business purposes.
If you have paid for any business expenses personally and have not been reimbursed, it’s time to submit that expense report and get paid. These expenses are easy to forget about and that means the tax deduction could get missed.
And, if your business doesn’t have a policy in place to reimburse you for these expenses, it’s time to get that in place too.