Commingling
In accounting, commingling means running company and personal money through the same account or card, so the books can no longer show whose a transaction was. The fix is a separate business account and a recorded entry — a reimbursement, a loan from the founder or a contribution — for every crossing.
Authority: IRS Pub. 583 — Business checkbook (opens in a new tab). Sources
The lessons that teach this
From the free founder back-office course, taught on one company's books, with exercises to work it yourself.
- Company money, kept apartCompany money lives in company accounts. Mixing it breaks the books, weakens the tax return and puts the liability shield at risk.8 min
- Set up your back office in a weekA week, in order: the EIN, the bank, the books, payroll, bills and invoices, the calendar and the records. Then a monthly close from the first month.7 min
What it is not called
Each of these means something else. Use one here and an accountant reading the product notices.
- personal expense (that is one symptom)
- a founder paying for things
Nearby in the catalog
No component names this concept outright. These sit in the same part of the system.
8System & states
Family specAlso in Controls
Defined in Lexicon. This page is generated from that document, so the two can't disagree.