How do I track business expenses I paid with personal money?

Steps:

1. Keep proof. Save the receipt and the card or bank statement line that shows you paid it.
2. Enter it in the business books in the right category, for example Supplies or Software, and add a note such as "paid from personal card."
3. Settle it one of two ways:
4. Reimburse yourself: move the exact amount from the business account to your personal account and note which expenses it covers.
5. Owner contribution: leave it unpaid back and record it as money you put into the business.
6. Do it monthly, not at year end, so nothing is forgotten.

What matters for a deduction is that the cost is ordinary and necessary for your business, as Publication 334 (2025) explains, and that you can prove it. For a mixed purchase, such as a phone used for both, only the business part counts.

Avoid recording the reimbursement transfer as a second expense, or the cost is counted twice. If this happens often, a separate business card makes the records simpler. General information, not tax advice.