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Using personal credit card and business EXp!

Discussion in 'Accounting, Tax & Legal' started by Triu, 18th Sep, 2006.

  1. Triu

    Triu Well-Known Member

    Joined:
    1st Sep, 2006
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    Location:
    WA
    Hi can anyone give me some advice on this! Is it okay to use my personal credit card for property business expenses and pay back with my investment LOC. Or should i have a separate credit card purely for property expenses etc.

    what does anyone think?
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    mmm ... it's easy if your investments are held through another vehicle like a trust (I submit a written "expense claim" quarterly to my trust, which then reimburses me for genuine expenses that I paid on my own credit card) ... but I'm not sure if it's all in your own name - might be a bit messy.

    Separate card is probably the better way to go - keep the money trail as clean as possible.
     
  3. NickM

    NickM Co-founder Staff Member

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    Location:
    Sydney
    Triu

    The biggest problem for accountants is capturing all the information. If you pay an expenses on credit card then reimburse from a different acct rather than the LOC, you may forget to include it in your tax return.

    if your system is thorough then you can do it on the one card, otherwise
    as Sim suggested a separate card may be the way to go.

    Personally, i use a separate card and at the time of paying the bill i schedule my internet banking to pay the card on a future date.

    Cheers
    NickM
     
  4. Jacque

    Jacque Team InvestEd

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    Trust an accountant to be super organised :D
     
  5. NickM

    NickM Co-founder Staff Member

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    Just trying to set a good example for my clients and keep my accounting fees down ! :D
     
  6. dkbook

    dkbook Member

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    9th Oct, 2006
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    Location:
    Melbourne, Victoria
    I agree, a seperate card is the best policy, it is way too easy to miss deductible expenses by losing them amongst personal transactions. To make life even more difficult many business' do not use their trading names on the card transaction detail that you get on your statement.
     
  7. grossrealisation

    grossrealisation Active Member

    Joined:
    8th Sep, 2006
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    Location:
    sydney
    hi all
    not sure how they are going to do it but westpac for one is looking at not allowing the frequent flyer points on business purchases on a personel credit card and are asking businesses to get there own card.
    they asked me about 3 weeks ago.
    this maybe a sign of things to come.
    I use my card for business and split the card statement at the endand manually pay it not auto