Ryan Vaughn flags multiple credit cards on business books as a sign personal expenses are being mixed in. Grocery purchases, mortgage payments, and other personal spending should never hit the business ledger. Keep personal and business finances completely separate to avoid audit trouble.
If I see a lot of credit cards on a small business owner's books, that's a red flag because chances are many of those credit cards are really just for personal use, and you want to keep all personal transactions off of your books. I should not have a personal credit card that I'm tracking on my books. I don't need to be tracking my grocery store purchases for my food at my house on my books. I don't need to track my mortgage statement for my primary residence on my books. If you want to keep track of your personal information, that's awesome, but do that in a separate file. Don't commingle your business transactions with your personal transactions.
