Owning and operating a business comes with some perks. Some business-related expenses you can deduct from your taxes include travel expenses, phone, utility, and internet bills. But taking advantage of these benefits is impossible if you've been mingling your personal and business expenses. Business credit cards, separate business and personal accounts, and good bookkeeping can help you take advantage of deductions.
Good bookkeeping can also help you when the worst happens. Getting audited is stressful, but it's even worse if your business and personal expenses are tied together or you don't have records to back up your claims. Accurate financial records help you document your deductions. In addition, they can help you examine cash flow and figure out your profitable areas or losses. Financial institutions will also want to see a history of accurate financial records before they consider lending to your company.