Special Investigation:
The Mystery of the Personal Charges on the Business Card
Filed by: Detective Debit
Category: Special Investigations
Let’s follow the breadcrumbs.
A tale as old as entrepreneurship: “I’ll just put it on the business card this one time.” Fast-forward 90 days, and that innocent coffee run has turned into a murky mix of Target runs, family dinners, and late-night Amazon sprees.
Detective Debit noticed something strange while reconciling a client’s books: Starbucks, DoorDash, and even a Target toy aisle charge—all on the business card.
At first, the client insisted they were legit “work expenses.” But when pressed, admitted: “I was in a hurry, didn’t have my wallet… and it just became a habit.”
Spoiler: the IRS does not care about wallet location.
Primary Suspect: Commingling of Funds
The most common bookkeeping crime on record. Blurring the line between personal and business spending throws off reports, frustrates tax pros, and makes audits a nightmare.
Accomplices in the Crime:
"I’ll fix it at tax time”
“My accountant will sort it out”
“It’s technically a business dinner because I was thinking about work”
“It’s just one charge…”
Evidence on File:
Dozens of small personal charges scattered across months
Misleading profit & loss statements with inflated expenses
Receipts with no business purpose or notes
Business tax return flagged for inconsistent deductions
Cleanup Protocol: When Personal Expenses Creep into Your Business Books
Create a “Draw” or “Owner’s Pay” category if reimbursement is appropriate
Review monthly for rogue entries — especially from shared accounts
Educate the team (or yourself!) on what counts as a legit business expense
Keep personal cards nearby so the business card isn’t the easy option
Ask your bookkeeper for a final review to be audit-ready
Remember: a clean ledger keeps your deductions legit — and your future self grateful.
Lesson from the Ledger:
“Just this once” is the gateway to financial clutter. Mixing business and personal doesn’t just make for messy books — it weakens your credibility and puts your deductions at risk.
Final Notes from Detective Debit:
If the IRS ever comes knocking, the burden of proof is on you. Keeping business expenses squeaky clean isn’t just good practice — it’s your first line of defense.
Suspicious charges lurking in your ledger? Book a free consultation with Detective Debit. Let’s sort the deductible from the debatable before the next audit hits.
Case File 017 — The Disappearing Contractor Payments
They were paid. The money left the account. But come tax time… their 1099s were empty. Detective Debit follows the misclassification trail to find where the records vanished—and how to make sure contractors don’t disappear from the IRS’s radar.