Hello there, vabburi. Let me share information about using the same account for business and personal in QuickBooks and how it impacts your client's taxes.
In QBO, we don't recommend combining business and personal expenditures. Mixing personal and business expenses complicates record-keeping. It becomes difficult to accurately track which expenses are deductible and which are not, leading to potential errors in financial reporting and tax filings.
However, if your client runs into a situation where business and personal finances mix, you can follow these articles on how to record such transactions:
In addition, you can reconcile your client accounts so they always match their bank and credit card statements.
Feel free to click the Reply button below if you have questions about handling personal and business expenses in QuickBooks Online. I'm always here to help. Have a great day.
