What’s the difference between business expenses and personal expenses?

What’s the difference between business expenses and personal expenses?

Business expenses are costs incurred in the course of running a business, while personal expenses are for individual needs.

Can you give me some examples of each?

Sure! Business expenses include office supplies, travel for work, and employee salaries. Personal expenses include groceries, rent, and personal entertainment.

How can I track these expenses effectively?

You can use accounting software, spreadsheets, or expense tracking apps to categorize and monitor your expenses.

Are there tax implications for mixing these expenses?

Yes, mixing business and personal expenses can lead to tax issues. It's important to keep them separate for accurate reporting.