Do you categorize mixed expenses?

Yes. When an expense is partly business and partly personal, only the business portion is typically included in your bookkeeping.

What counts as a mixed expense?

Common mixed expenses include:

• Phone or internet bills
• Vehicle use
• Home utilities (if you work from home)
• Shared tools or equipment

How to handle mixed expenses

Determine the business portion

Estimate the percentage used for business purposes (for example, 40% business / 60% personal).

Record only the business share

Only the business portion belongs in your books. The personal portion generally stays out of business expense totals.

Be consistent

Use the same method month to month and keep brief notes explaining how you calculated the split.

Why this matters

Accurately splitting mixed expenses keeps your records realistic and prevents overstating costs. Over time, consistency matters more than precision.