Are builders allowed to use their personal funds to cover project expenses directly?

Using personal funds to cover project expenses is not advisable as it can lead to complications with accounting and legal matters. Builders are generally required to manage their business finances through a dedicated business account. This separation helps maintain clear financial records, which is crucial for tracking expenses, preparing financial statements, and ensuring compliance with tax obligations. By handling expenses through the business account, builders can also better demonstrate their financial stability and professionalism, which may be beneficial for obtaining loans or attracting future clients.

In situations where personal funds are used, it can create confusion regarding ownership and accountability for expenses, potentially leading to disputes or issues in financial audits. Therefore, managing project finances through business accounts is considered best practice in the industry.