5 Bookkeeping Tips for Being Successfully Self-Employed 55

5 Bookkeeping Tips for Being Successfully Self-Employed

Being self-employed is one of those things in life that when you get there, you receive the ultimate freedom in many aspects of life. But that comes with a price. And that price is the responsibility you take.

By being your own boss you become the one who needs to find new clients and make them happy, work enough and structure your days in the most effective way possible, make enough money to meet your monthly budget, and – last but not least – taking care of that money.

Yes, even if you hire somebody to take care of your finances, in the end of the day you’re the one in charge. And if something isn’t paid on time, if you haven’t made a smart financial decision, have forgotten about a new tax rule, or don’t watch out your expenses, the freedom you’re enjoying so much can be gone.

Let’s make sure that doesn’t happen by taking control of the money you’re working so hard for. You should know some basic tax principles to always be feeling safe and avoid unnecessary stress.

Here are some bookkeeping tips to keep in mind as an independent worker:

1. Keep track of everything going on with your money.

Some get scared when they hear about budgeting. But that’s where all the control over your money and managing them well begins. By knowing what’s coming in and where it’s going.

That’s the surest way to know you’re making enough to live the life you love, and that you’re spending much less so you can set something aside.

2. Make saving a habit.

Habits are important. So we must develop the right ones about every area of life we want to improve.

One such habit when it comes to your finances as a self-employed person is to always be saving no matter what.

Have a separate account for that and set aside something weekly or monthly.

3. Don’t be afraid to ask for help.

You don’t need to do it all on your own.

Speaking to professionals and asking for advice is always a good investment of your time and resources. It will pay off in the long-run too.

Using the services of a company such as Howlader & Co can turn your whole financial situation around and guarantee you a more secure future.

Their experts offer friendly, fast and reliable services.

4. Save all documents.

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Now here’s something so many small business owners and freelancers don’t actually do: keep hold of anything related to your finances.

I’m talking about receipts (even those that seem absolutely unnecessary), email and other types of online or written correspondation, and anything you can think of that has something to do with the business.

You shouldn’t live with the thought that you’ll get audited, but if something happens and you have more than they ask for when checking what you’ve been making and spending on, you’ll make quite a good impression and the guess work will be avoided.

5. Learn more about all the things you can deduct.

So many people pay more taxes in the end of the year than they actually need to.

As a self-employed individual, you’ve got more deductions than you probably know.

Let’s begin with office space and supplies, and anything directly related to the business. If you’re working at home, that can be half of the rent in some countries, or percentage of the house used for office space.

Then comes travel. Your next trip can be considered business costs if you find a way. So keep track of all transactions related to it.
As for mileage, you can calculate what you use from when you’re leaving the office (or your home if these are one) to the moment you come back.

Using your phone too much? International calls, 2 lines, or else? Well, deduct phone bills then.

Some meals and/or drinks can also go without tax considering they go together with meeting a client or potential partner.

If you dig deeper into the whole tax deduction thing, you can find out a lot of more interesting opportunities.

For instance, you can save on taxes if you employ a family member.

Your money won’t handle itself, you need the knowledge and dedication to track everything and take decisions that concern your budget for years to come.

What other bookkeeping tips do you have that help you manage your finances better?

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Should You Buy an Ecommerce Business? 21

Should You Buy an Ecommerce Business?

If you have the funds to make an investment, but you are not sure which is the best option, a good idea would be investing in an ecommerce business. They represent the businesses of the future, and it is already a known fact that they are very profitable.

With an online business you can choose to build it yourself, but that is not what we are recommending. In our opinion, buying an ecommerce business comes with more advantages and in this article we will talk about some of them.

You won’t have to deal with the tough work.

The first days are the hardest when you decide to start a business by yourself.

First of all, you have to decide exactly what kind of products you want to sell and then find the suppliers for them. You need to create a quality customer service, come up with marketing strategies, develop the site, SEO, and many other things.

But when you buy an online business you won’t have to deal with any of these. A business that has been around for a while already has all these things and this means that you won’t have to deal with them. However, you should make sure that you do a little bit the research before you buy the site. You need to make sure that everything matches your requirements.

Successful business model.

Quitting While You're Ahead! Understanding the Limits of Natural Business Growth

When you are just getting started it is hard to tell whether your business will make it or not.

In some cases, it might even be complicated to come up with a strategy that will sell your products. Nevertheless, this problem does not occur when you are buying an online business.

In this situation, you already know that the business existed for a few years, which means that it generates enough revenue. It also means that the traffic and customers are established already so there is almost no risk.

However, before you buy a website you will need to make sure that the financials are accurate.

You can choose to buy a business from an online marketplace such as Exchange by Shopify. This way, data such as traffic and financial reports will be delivered by the platform, not the seller, so you will know for sure that they are 100% real.

Cross-sell potential.

If you already own an ecommerce business it might be a good move to buy another one. By getting another one you will gain access to additional customers, email addresses and traffic, which could be really helpful for you.

If you analyze the metrics of the business a bit you will be able to tell how to cross-sell existing products. Tools like shopping cart data and Google Analytics should help you determine customer behavior, including the returning rate and how many items per order are there.

Cross promotion between email lists could be a great marketing tool if it is used correctly, and even using “competitive” discount could be a way to make customers move between the two businesses.