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Author: Tom WheelwrightCopyright (c) 2010 Tom WheelwrightThis week, I'm picking up where I left off last week which is using your bookkeeping to capture "mixed" travel expenses. Some travel expenses may be business and personal, I refer to these as mixed expenses.When it comes to mixed expenses, I always advise to pay for them personally. From an audit standpoint, it is much better to pay business expenses personally than to pay personal expenses from your business. But, in order to capture the tax savings on the business side, it's critical to get the bookkeeping right.Step 1:Capture the Transaction in Your Personal BookkeepingYour personal bookkeeping is the starting point to capturing mixed expenses. When capturing mixed expenses in your personal bookkeeping, they need to be broken into 2 parts:Part 1:The Personal PortionThe personal portion is coded to the corresponding expense account, such as airfare, hotel, or transportation.Part 2:The Business PortionThe business portion is the most important piece because this is what will ultimately reduce your taxes. When you code the business portion of your mixed expenses, code it to a current asset account that is used only...more
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