I have a personal credit card that I use for both personal and business purchases. Ideally, I would have a separate credit card for each. Until that is sorted out, how does my business spending on my personal credit card fit into my business accounting?
The approach I am considered is to treat the credit card as a business credit card for the purpose of the accounting (I'm a sole trader), and calling all my personal transactions on that account drawings.
Are there issues with this approach? Is there a better way?
The way to do this is to fill out a business expense report and get reimburse from your company. I know it sounds a little corporate but that is the cleanest way to do it since you want to account for the expenses in the business.
Doing it the other way is problematic. From an accounting point of view, that would technically co-mingle your company money and your personal money. That is bad. It's better to keep it clean and use the card as a personal card and have the company reimburse your expenses via an expense report.
I agree completing an expense report is the cleanest way. Another option which I use is to write two separate checks. I write a check for the business expenses from my business bank account and a personal check for my personal expenses. I make sure to keep all the business receipts in my business records.