Separate business and personal expenses from one mixed account
Client payments, groceries, software, and work supplies can all appear in the same account. Arkrel helps self-employed people in the US organize that activity for a tax-ready report.
Start with one statement. Review it merchant by merchant and see the results in My year.
Gather the records that explain your spending
Choose the calendar year you want to prepare. List the bank and credit card accounts you used for work, including personal accounts that contain business purchases.
Keep receipts, invoices, and order details nearby. They help explain what you bought and how you used it.
Review purchases with your business in mind
As you work through merchants, ask:
- What did I buy?
- How did I use it for work?
- Was any part for personal use?
For an order containing both work supplies and household items, keep a note identifying the business items. For something used for both work and personal purposes, preserve the details explaining that use.
Personal expenses generally are not deductible business expenses. Mixed-use expenses need a division between business and personal use. IRS guidance on business and personal expenses.
Give money movements their context
Keep the purpose of transfers, card payments, and refunds with your records. When a bank statement contains a credit card payment, use the card statement to review the individual purchases.
Your notes can be simple: the account involved, the purchase involved, and any question you want to discuss with your accountant.
Prepare the year’s report
Catch-Up is $499 per tax year with a 30-day money-back guarantee. It includes merchant review, My year, a tax-ready report with P&L and Schedule C totals, and report exports.
For an ongoing routine for the current year, Autopilot is $49/month with a 14-day free trial.
What does Free include?
One statement end to end: upload, merchant-by-merchant review, and My year. No card needed.