Pursuit of the American Dream

It is scary at first, but turned out to be one of the smartest moves I ever made. I have no regrets going out on my own.

Good luck!!!! Be sure to keep your personal and business accounts separate.

Although I do not recommend charging groceries to your business credit card,
there are several things like cleaning supplies that you can charge to your business.

Someday you will look back on this time and congratulate yourself for making a wise, life-changing decision.

"Good luck!!!! Be sure to keep your personal and business accounts separate."

Actually, that is kinda bad advice.

The advice of our CPA is to pay our normal bills (Company or personal) with a company check and he will determine at tax time if there is something there to write off.

Been doing it that way for 15 years.

Randy

> Be sure to keep your personal and business accounts separate.

I think this is good advice, depending on how you define the word "accounts." I only have 1 checking account (it's in the name of the business), and no credit cards in the name of the business. I use the checking account to pay for personal expenses, just as I use my personal credit cards to pay for business expenses. I do, however, make sure that all checks and credit card charges are spread to the appropriate accounts in my accounting software so I can keep track of what's what. This is crucial to staying abreast of business health, as well as in the preparation of tax returns.

Jim,

You just confused the heck out of me.

I guess it depends on how your business is set up, I am set up as a "Sole Proprietor"

You must be setup as a LLC or something related and I am not familiar with that.

I have been told to treat every expense as a business expense and let the chips fall where they will at tax time.

It seems to be working for me.

Randy

> I only have 1 checking account (it's in the name of the business), and no credit cards in the name of the business. I use the checking account to pay for personal expenses, just as I use my personal credit cards to pay for business expenses. I do, however, make sure that all checks and credit card charges are spread to the appropriate accounts in my accounting software so I can keep track of what's what.

Why do this, it seems like you are creating accounting headaches for yourself, why not just use business accounts for business and personal for personal, I am guessing you hire a bookkeeper or dont personally use quickbooks because what you are doing is cumbersome....KIS

Also, I have been told that your tactics can in a quicktrip 2 auditown.

My accountant charges $285 per hour. It would be scary thinking he
has to go through all my checks and receipts to decide which is
personal and which is business.

> why not just use business accounts for business and personal for personal, I am guessing you hire a bookkeeper or don't personally use quickbooks because what you are doing is cumbersome.

I originally had both business and personal checking accounts. They were at different banks, because I wanted the business account to be at a local outfit. But during the banking consolidation free-for-all in the late '90s I got tired of having my banks bought out from under me -- with all the attendant hassle of changing account numbers, getting new checks printed, and having to change physical locations -- so I got rid of the personal account, which I wasn't using much anyway except to transfer funds from the business account and pay a handful of monthly bills (e.g., home mortgage, utilities, credit cards). It was easier to have only one checking account.

No bookkeeper here, just me. I use Peachtree because that's what I was familiar with when I started up. I'm sure Quickbooks would work just as well. Having one checking account doesn't seem cumbersome at all to me.

> Also, I have been told that your tactics can in a quick trip 2 auditown.

I suppose it depends on your definition of "quick." It's been 15 years since I ditched the personal checking account, with no audits yet.

If you write a check to your nephew for $20 for a birthday present,
does your accountant know if it is a business or personal expense?

Thank you all so much for the well wishes, encouragement, and advice.
AND for proving once again that surveyors will debate anything, on any topic, at any time 😉

It sounds to me like the common-thread advice is to find the best accountant that I can afford, and do whatever he or she advises me to do. Am well on my way in that department. My brother has 3 masters degrees, including a masters in finance, and has recommended his accountant. Seems like a good place to start.

Thanks again for the well wishes. I'm already enjoying being my own boss. I gave myself the weekend off (which I wouldn't have had at my old job (on salary even)). I got the mower fixed, the grass cut, the Christmas lights down off the roof, watched a movie with my son, went to church, helped a friend carry CMU blocks down the hill to his pool, went swimming in said pool, and slept two peaceful nights sleep.
Cheers! 😀