I use the Sunset version of Microsoft Money to track all of my financial accounts (both business and personal). This works for me because I use a Windows XP platform to maintain these records. Quicken is a good alternative, if you are looking for something similar.

The illustration below, shows the MasterCard account activity for the last month (via Microsoft Money).

Line items shown for the MasterCard account include:

For various reasons I prefer to use my credit cards rather than debit cards, whenever possible, hence the reason you also see the charge for my visit to Dunkin Donuts (I rarely do this). That said, I pay entire balances when statements come due.

Keep in mind, I am a sole proprietor (QiSoftware), however rarely have the opportunity to deduct business expenses. That said, I do track business expenses through payment checking accounts and Microsoft Money.

The MasterCard discussed in this post is a personal credit card which I use for both personal and business use. My business is a legal business entity (in Maryland), however I use the same tax identification number for both business and personal filings. I note these details in case you are a business owner and wonder why I track and pay in the manner I have outlined.