One of the most important accounting principles is to treat the business as its own separate entity. That applies whether you operate as a sole proprietor, LLC, partnership, or corporation.
Keeping personal income and expenses out of the business records protects the usefulness of the profit and loss statement. If outside funds or personal spending run through the same picture, it is much harder to tell whether the business is actually growing or struggling.
Business and personal expenses are like oil and water. They should never mix.
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