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What to Do When Personal Expenses Get Mixed with Your Etsy Business
Advice from an Accountant
Brendan McCoy
November 16, 2020
Ahhh…it is that time of the year when you are way too busy to worry about the accounting and bookkeeping side of your handmade business. I get it, with Black Friday coming up, the last thing on your mind (and maybe ALWAYS the last thing on your mind) is the accounting and bookkeeping for your store.
Many of you are WAY too busy now crafting and creating to worry about such a BORING topic…
But what happens when you are so busy that you accidentally swipe your personal credit card for an Etsy business expense? Or worse yet, you do not even have a business credit card or bank account and you just mix the funds together in your personal account? Can you still take these deductions for a business expense?
There are three main “money mixing” scenarios that can happen.
You have a business bank account and buy something personal.
You have a business bank account BUT you pay for something for your business on a personal card.
You do NOT have a business bank or credit card and “mix” your personal and business funds together.
If any of these sounds like you, then do I have a blog post for you!
In this post I am going to tell you what to do if you use personal money on business expenses OR vice versa, you use business money on personal expenses.