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Business Bookkeeping for Your Home-Based Business (Part 1)
Business Bookkeeping for Your Home-Based Business (Part 1) Now that you have decided to start your own home-based business (I think you were crocheting blankets in our last example) you need to set up a few basic procedures to ensure that your recordkeeping is complete and accurate. You do not need an accounting degree to accomplish this. Keep Seperate Bank Accounts: My first piece of advice is to get a separate bank account for all business activity. This is vital. This is important even if your business is set up as a sole proprietorship; essentially YOU are the business. Many home-based business owners believe that since the money to…
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Money Matters: Business or Hobby?
Is My Hobby Really A Business? “Generally, an activity qualifies as a business if it is carried on with the reasonable expectation of earning a profit.” (IRS Pub FS-2007-18, April 2007) You have been crocheting blankets for years. It is a relaxing activity that you really enjoy. People have offered to pay you to make one for them. You think, “Why not?” Do you intend to start making blankets (or other items) for a profit? Or, do you just want to have your friends reimburse you for the cost of the materials? If you don’t intend to make a profit from your sales then you are engaging in…
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Why Should I Reconcile My Bank or Credit Card Statements?
Why Should I Reconcile My Bank or Credit Card Statements? I often come across new clients who say, “I have money in my account at the end of the month; why do I need to reconcile the account?” Well, for starters, if you don’t reconcile the account(s) you will have trouble creating that budget that we talked about. Also, if you are a victim of fraud, you won’t necessarily know unless you at least review the statement. Finally, if you are a business owner, reconciling the statement ensures that you have taken all of your expenses into account so you won’t miss out on any tax deductions.…
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My Top Budget Trimming Tips (or “Oh No! I’m Overbudget!”)
It happens to all of us. We make that list of expenses and the total amount exceeds our income. What to do! Here are some of my favorite tips: Eliminate the unnecessary. Find those items on the list like gym memberships or other subscription services. Anything that you don’t use regularly or really look forward to receiving should be canceled. Seek out lower cost options for your “Needs”. Try bundling services for discounts. Many cable companies offer discounts for combined cell phone, land line, internet and television. You can also get great discounts on your insurance by getting multiple policies with one company. I have been with…
