Tag's: Business expenses paid with personal funds

Before I answer this question, let us examine the main goal of accounting. Accounting should provide useful information to stakeholders. This information should be useful for taking meaningful actions. This means you have to cost out your business as if nothing is received for free. In the long run, it is going to be impossible to run your business unless you can cover "all" costs. Using wrong cost information will

As a business owner you sometimes run into situations where you have to use personal funds to pay for business expenses. For example you are at the store shopping for personal needs and then you see an equipment you need for your business on sale. You do not have your business credit or debit card with you. So you use your personal credit or debit card to buy the equipment.