Separating business and personal spending
Why a separate account helps and what to do when the two have already mixed.
Bookkeeping · Version 1 · 2 min read · Reviewed by Meridian Review Team · Sep 15, 2026
Why separate
Mixed spending makes it hard to see how the business is doing and slows everything at year end.
The simple fix
- Open a separate account for business income and expenses.
- Pay business costs from it.
- Pay yourself from it, as a clearly recorded transfer.
If they already mixed
- Do not hide it. Tell your bookkeeper.
- Go through the statements and mark personal items.
- From now on, keep the two apart.
Why it matters at filing time
Your preparer needs business expenses that are clearly business. Clean records mean fewer questions.
Ask for help
How you should pay yourself depends on how the business is set up. That is a question for your preparer.