Keep business and personal money apart
The single best thing you can do for your records is also the simplest: a separate bank account (and card) for the business.
Why it helps
- Your bank statement becomes a list of business money only.
- You don't have to explain your groceries to your accountant.
- You can see at a glance what the business really has.
Things that are partly personal
The truck, the phone, the internet at home: many owners use them for both. You can claim the business share. Work out a fair share once (a mileage log helps for the truck), and stick to it.
In PeaceBooks, go to Settings › Partly personal and set the business share of each one. From then on, every phone bill or truck repair is split for you.
Paid with the wrong card?
It happens. Bought business supplies with your personal card? Record it as an expense and choose Paid with my own money. Bought something personal with the business card? Record it as Paid myself. Either way, the records stay honest.
This is general information to help you keep good records, not tax or legal advice. Your accountant knows your situation; check with them before a big decision.
More tips
Which receipts to keep, and for how long
Six years, the details that matter, and how to keep them without a shoebox.
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Do you need to charge GST/HST?
The $30,000 rule, registering early, and what changes once you're registered.
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Paying yourself: what counts and what doesn't
Why money you take out often isn't an expense, for the self-employed and for companies.
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