Mixed Money, Messy Decisions

If You’re Closing the Year With Blurry Numbers, Read This First

I’m going to say this gently, and then I’m going to say it clearly.

If your personal and business spending are mixed together, your numbers are lying to you.

Not because you’re doing anything wrong. Not because you’re “bad with money.”But mixed spending blurs the story your business is trying to tell.

And right now, as you wrap up the year, start prepping for taxes, plan for growth, and reflect on what worked, this lack of clarity can quietly sabotage your progress.

This is one of the most common issues I clean up for coaches, course creators, service providers, and creative business owners… especially right before tax season.

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What Mixed Spending Actually Breaks (That Most People Don’t Realize)

Let me give you a glimpse of what I hear all the time from smart, capable business owners:

“I think I made money this year… but I don’t trust what I’m seeing.”“My reports look fine, but in my gut, I know something's not adding up. “

Here’s what we almost always find:

• Personal expenses running through the business account (hello, Spotify, Amazon, DoorDash)

• Business expenses charged to a personal card and never reimbursed

• One checking account is trying to do everything

• Owner pay is based on vibes instead of a plan

This isn’t about catching mistakes; it’s about finally understanding the whole picture. Here's the truth: when your money is blended, your reports stop being decision tools.

You lose clarity on:

• What’s actually profitable

• What’s quietly draining your cash behind the scenes

• Whether the business can realistically afford that new hire, tool, or investment

• And so instead of moving with purpose, you hesitate.

You second-guess.

You spin your wheels.

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Why Separation Isn’t “Nice to Have”, It’s Business Critical

Here’s where I see the resistance kick in.

“This sounds like extra bookkeeping work.”

“Isn’t this just for people who have a team or big expenses?”

“I’ll deal with it once I start making more..”

Some people think I’m just being picky here. I’m not.

But here’s the truth: separation isn’t about complexity, it's about clarity. And clarity is something you need, whether you’re making $30K or $3M. Also? The IRS cares about this.

The IRS is crystal clear (even if they say it in bureaucratic gobbledygook):

Personal expenses are not business expenses.

When they’re mixed together, it gets a whole lot harder to prove what’s legit. You lose credibility, and so do your books.

This matters for three big reasons:

1. TaxDeductions

Messy records=missed write-offs OR taking deductions you can’t support. Both can cost you, either in overpaying taxes or raising audit risk.

2. Audits & scrutiny

When business and personal expenses are all mushed together, it raises red flags. Clean books with clear boundaries show the IRS that you’re running a real business, not a hobby.

3. Better Decision-Making

Even the best accounting software can’t fix bad inputs. If your data is distorted, your reports are too. Clean separation gives you numbers you can actually trust.

This isn’t about compliance theater. This is about running a business that works.

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What This Cleanup Actually Looks Like (No Judgement Required)

You don’t need to overhaul your entire accounting system or become a spreadsheet wizard. What you do need is a system that separates personal from business, and keeps it that way. Here's what I walk clients through step by step:

Step 1: Identify what doesn’t belong

We start by flagging:

• Personal spending that snuck into business accounts

• Business expenses paid out of personal accounts (and never reimbursed)

• This is not about shame, it’s about truth-telling. You can’t fix what you can’t see.

Step 2: Decide How to Treat Each Transaction

There are a few correct ways to handle things:

• Personal expenses paid by the business → recorded as owner draws or distribution

• Business expenses paid personally → reimbursed and categorized properly

• Business expenses paid personally → reimbursed and categorized properly

• This is where most people freeze, because no one has ever taught them the logic behind these choices. Once you see it, it’s shockingly simple..

Step 3: Reconcile so the books match reality

Reconciling your books doesn’t mean obsessing over every penny. It means making sure what’s in your accounting software actually matches what happened in your bank account.

When done monthly, this process is quick and painless. When skipped? It turns into a mountain by tax time, often with missing money and confusing reports.

A Real Example: What Changes After the Cleanup

One of my clients (we’ll call her Sarah) came to me overwhelmed and discouraged. She was making six figures as a brand strategist, but had no idea where the money was going. She was hesitant to hire help, unsure if she could take a vacation, and constantly waiting for the next tax surprise to hit.

We cleaned up her books.

We set up proper business checking and credit card accounts

We defined owner Pay

We reconciled eleven months of chaos.

And the Shift?

• She paid herself a consistent salary for the first time ever

• She confidently hired a part-time VA

• She got her taxes filed early, without panic

• She finally felt like the CEO of her business, not just the operator

She didn’t make more money. Nothing magical happened. But she got in control, and peace

The fog lifted.

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Year-End is the Perfect Time to Fix This

If you’ve been waiting for “the right time” to get a handle on your numbers, it’s now.

✅ Before you send that profit and Loss to your tax preparer

✅ Before you set 2026 revenue goals

✅ Before you invest in another tool, program, or person

Your numbers need to tell the truth, or nothing else works.

They’re the foundation.

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Ready to See What’s Really Going on?

You don’t need more spreadsheets.

You don’t need to “get better at math.”

And you definitely don’t need to beat yourself up for how things were set up before.

You need:

• Books that actually reflect your business

• Systems that tell the truth

• A partner who can help you see what’s really happening

calmly and clearly

👉 Let’s schedule a call and talk through what’s working and what’s not.

Whether it’s a simple cleanup or a complete system reset, you’ll walk away knowing what’s really happening in your business, and what to do next.

Don’t start the new year in a financial fog. Let’s clear it together.