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Personal expenses from business funds, or business expenses from personal funds
Personal expenses from business funds, or business expenses from personal funds

Using business funds for personal expenses, or using personal funds for business expenses, co-mingling of funds

Yzza avatar
Written by Yzza
Updated over a week ago

Technically, you shouldn't use personal funds to pay for business expenses, or business funds to pay for personal expenses... but we understand it happens sometimes. These, however, are NOT funds transfers.

Here's a few scenarios and how to properly record them:

  • If you pay for a business card with personal funds, categorize that deposit on your business card account as an Owner Contribution

  • If you pay for a personal card with business funds, categorize that expense from your business account as a Owner Draws

  • If you pay for personal expenses with business funds, categorize that expense as Owner Draws

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