Do you categorize mixed expenses?
Split mixed expenses so only the business portion shows up in your books.
Yes. When an expense is partly business and partly personal, only the business portion should be 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 should stay 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.
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