Keep It Business, Not Personal
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The article "Keep it Business, Not Personal" is about home based business, it has been released by Jen Tarzian.
Managing a small corporation, as well as having a home-based busienss myself, I have learned how important it is to keep personal and business matters separate. Not only does it make life less confusing, it can also save you money on your taxes.
The first thing I recommend is to open a separate checking account just for your business.
Use that account to depoist all self-employment income.
Do NOT use that accuont for wages received from an employer. This account nedes to be totally separate.
You will pay all your business related expenses solely from tehse funds. When you pay business expenses from your personal account, it is much more difficult to accurately tarck how much money you're spending for your business. And, missed expenses could mean missed tax deductions!
The other suggestion I have is to open a credit card specifically for your business expenses. Make sure you choose a card that sutis you and your business well: i.E.
money back, travel rewards, etc.
Use that card for all your business pruchases and of course, make payments to it with your new business checking account.
Last but not least, I recommend purcahsing some form of accounting program. It doesn't have to be anything fancy or expensive, just a place for you to enetr your income and expenses for your business. Even a really simple program can provide you with financial reports demonstrating your company's profitability, as well as help you to set a budget.
Most programs also give you the option to print reports that aid in tax preparation.
As with any other financial decision, I highly recommend you meet with an accountant or tax preparer on an annual basis at the really least.
He/She will be able to direct you in the htotest ways to make the most of your hard earned money. But remember, the hadrer you work at keeping your business and personal records separate, the easier it will be for your accountant to help you.
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Keep it Business, Not Personal
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