How to Split Business and Personal Expenses and Stay Tax-Compliant
Welcome to ASB Accounting Services Bulgaria – your trusted partner for accounting, tax, and business services in Bulgaria!
Mixing business and personal expenses is one of the most common – and costly – mistakes entrepreneurs make. Today, I’ll show you how to keep things clean, legal, and stress-free.
1. Why It’s Important to Separate Expenses
- It keeps your bookkeeping organized.
- It makes tax reporting much easier.
- It helps you avoid problems during audits or inspections.
- You get a clearer picture of how your business is really doing.
2. Open a Separate Business Bank Account
- Always use a dedicated bank account for your business.
- Never pay personal bills from this account.
- This is one of the first steps we help new companies take in Bulgaria.
3. Use Separate Cards and Payment Methods
- Keep a separate debit or credit card just for business use.
- Avoid using your personal card for business expenses.
- This saves time and prevents confusion later.
4. Track Expenses with Clear Labels
- Use accounting software or even a simple spreadsheet.
- Label each expense properly – office rent, supplies, advertising, etc.
- If you use personal money for a business expense, record it and reimburse yourself properly.
5. Don’t Deduct Personal Expenses
- Only business-related expenses are tax-deductible.
- Personal costs like clothes, holidays, or groceries are not.
- Be careful – Bulgarian tax authorities are strict, and mistakes can lead to fines.
6. Work with a Professional Accountant
- We can help set up proper systems from day one.
- We review your expenses and ensure you claim only what is legal.
- This saves money and reduces your risk.
If you’re running a business in Bulgaria, make sure your financial life is well-organized. Keep your business and personal expenses separate—it’s one of the smartest things you can do.
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If you want tailored advice for your business, get in touch with us at ASB Accounting Services Bulgaria.
Thank you for reading! Don’t forget to like, subscribe, and hit the bell button for more tips on doing business in Bulgaria!