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Good question! Yes. Two reasons: (1) we will auto-categorize your business card expenses, and (2) many tax write offs are split personal / work expenses. Examp
by pkoullick92 8y ago
Good question!
Yes. Two reasons: (1) we will auto-categorize your business card expenses, and (2) many tax write offs are split personal / work expenses. Examples: gas if you drive your car for both work and personal use, home office expenses, phone bill, electronics, etc. Those write offs are really easy to miss out on!
- yjhoney 8y agoThank you
- kazinator 8y agoOP will probably pay for these with the business credit card and then deal with the personal/business split at tax time for specific kinds of expenses which are on that card. Some will be 100% business only, and some (like vehicle-related) will be split. In Canada, the CRA wants self-employed people and business owners to keep track of their odometer readings and log all trips that are for a business purpose. They could ask for that if they audit the individual. The fraction of business use kilometers versus driven is then applied to recurring expenses like fuel and oil, and also to capital cost allowance: the yearly depreciation of the vehicle asset.
- odysseus 8y agoNote that some large U.S. banks already automatically categorize credit card expenses in a single neat report at the end of the year, for free.