How Do You Handle Owner Perks?
Buying coffee with the business card? It might be personal spending. It’s tempting to treat your business like your wallet, but not everything is a deductible business expense. Meals, gas, or supplies might feel like business costs—but if there’s no connection to business activity, they won’t hold up at tax time.
QuickBooks lets you label transactions as personal or “owner draw,” which keeps them off your P&L. It’s especially important if you’re trying to get clean books for an S-Corp election or are being evaluated for funding.
We regularly sort these out in Clean-Up Projects and build in reminders during Monthly Accounting so your books reflect real business activity. A Chandler CPA (like us) can help you draw the line and stay audit-ready.
Questions? Call us at 480 747 3935 or visit our Monthly Accounting Services page, too!
