There are many entrepreneurs who want to run all their business AND personal expenses through the business. For example, earlier this spring I witnessed a father buying his son’s baseball equipment at a local sporting goods store. I chuckled when he pulled out a company check to pay for the equipment. Sure, one expense might get buried and never noticed in an audit but experience tells me that "pigs get fat while hogs get slaughtered." Many business people don’t understand where to draw the line. Business expenses are fine to deduct. But running obvious personal expenses through the business just isn’t acceptable. It could even be a reason to "pierce the corporate veil" in litigation causing you to lose your limited liability protection.
But where it may really hurt is when you go to sell your business. That is when it is critical to show the best possible operating profitability and cash flow to gain a fair price for your business. This means those avoidable (or perhaps illegal) expenses take away from the bottom line of the business and leave you with less value. Moreover, it draws questions about your integrity and could make it harder to sell our business.
So keep the end in mind. Accurate and organized financial statements are a must. A penny saved today might be a dollar lost tomorrow.