5 Bookkeeping Tips for Being Successfully Self-Employed

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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Becoming an Online Merchant: 4 Tips to Find the Perfect Product to Sell

Becoming an Online Merchant: 4 Tips to Find the Perfect Product to Sell

E-commerce is a booming industry and will only continue to grow in the coming years. That’s why it’s not so surprising that there are plenty of people who want even just a small slice of the proverbial pie.

But whether or not you are looking to establish a full-blown online store or would simply want to supplement your income by buying and selling items on the side, you have to pick a product to sell that would, well, sell.

With the right marketing strategy, one can argue that anything and everything can be sold online. However, the real challenge is finding a product that is conducive to success. How do you find that product? Here are a few pointers.

Finding The Ideal Product to Sell

1. Target Hobbyists and Collectors

You’ll be surprised by just how much money hobbyists and collectors are willing to spend to fuel their passions.

If you have a knack for finding rare items, you’ll be a big hit with collectors. Whether they’re interested in action figures and toys, lapel pins, first edition books, stickers, sports cards, or even antique dinnerware. Just make sure that everything is legitimate.

Meanwhile, there is no shortage of hobbies on which people willingly invest their time and money.

Some of the more popular ones include biking, fishing, knitting and crocheting, calligraphy, model building (including radio-controlled vehicles), and handicrafts. Look for a leisure pursuit where you can act as the product-based solution and you’ll easily enamor yourself to these customers.

2. Something Hard to Find or Can’t be Bought Locally

There are some things that can be easily found in a local grocery store or a specialty shop — say gardening or baking supplies. But what about specialty foods, magician’s accessories, eco-friendly products, and fandom items?

Most likely, people will go online to find these. You can enlist the help of Google Trends and Google Keyword Tool to get a glimpse of what kinds of products people are searching for online and use the results as a guide to pick a niche product to sell.

You can also try to sell products that can’t be bought or difficult to procure locally, like Japanese Kitkats, the “three-story” alfajor Oreos, or Asian beauty products. The latter, in particular, is a good place to start since a lot of products are only available in select countries or regions but are available through wholesale Asian cosmetics websites. Do the hard work of sourcing these products (and offer them at reasonable prices) and see just how much your customers will love you.

3. Star with The Accessories Before The Big-Ticket Items

When people buy big-ticket items such as 4K TVs, high-end smartphones, and gaming laptops, they buy them only once. Their next purchase of these kinds of products will probably be in the next two to three years.

These are big investments, after all, and people are much more reluctant to spend huge amounts so often. However, accessories are much more common purchases and people are relatively more agreeable to spending more often on these items. Especially when they’re meant to increase the performance or ensure the longer life of the bigger product.

Think about HDMI cables and switchers for TVs, charging cables and power banks as well as cases and protectors for smartphones, and gaming accessories like a mouse, a keyboard, and a good pair of headphones.

If you already sell the big-ticket items, then it’s a wise decision to add the accessories to your online catalog. If you’ve yet to choose what to sell on your online shop and/or you have a limited capital, you should consider selling these kinds of accessories first.

4. Consumables Mean Customers That Keep Coming Back

Consumables mean that you will have a steady customer base and a rather reliable revenue stream. What’s more, when people need to order products from you regularly, it’s much easier to build a loyal customer base.

Think about specialty cooking ingredients (Himalayan pink salt, anyone?), supplies for arts and crafts, and even cosmetics. Just make sure you’re able to deliver each and every time, since you don’t know when your customers will run out of their stock or order in bulk in advance.

Of course, choosing which product to sell is just one part of a thriving online business, since you should also take into consideration the demand, potential competition, and reliable suppliers, among others. However, it’s also undeniable that finding a saleable item is a huge contributor to your business success. Good luck on your journey as an online entrepreneur!

If you're into ecommerce, you might be wondering what product to sell on your online store. Here are 4 great ideas that are sure to make you money and bring you loyal customers: #ecommerce #onlinestore #makemoneyonline #sidehustle