For small businesses and sole proprietors, mixing business and personal funds is a common practice. While it may seem convenient, it often leads to serious issues during tax reviews.
Tax authorities require clear traceability of cash flows and a direct link to actual business transactions.
Where do problems most often arise?
Issues typically occur with:
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use of personal bank accounts for business purposes,
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cash withdrawals without explanations,
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private expenses paid from business funds,
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unclear transfers between accounts.
Why is this a problem?
Because:
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it becomes unclear what constitutes a business expense,
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tax risks increase significantly,
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audits become more complex and intrusive.
➡️ Practical advice: Clear separation of accounts means fewer questions and fewer audits.
CTA:
👉 We can advise you on properly separating business and personal cash flows.