It’s safe to say that you have to be great with money when you work for yourself. Because not only do you have your own personal finances to manage, but you’ve also got the business' money to manage too. And this can be tough – especially if you’ve never had to manage business finances before. However, whether you work remotely as a freelance contractor or you’ve just set up your own business, you’ll want to make sure that you’re comfortable with the financial side of things. After all, this is work – so the money needs to make sense. But, the good thing is, it really doesn’t have to be complicated. Let’s take a look at how you can keep on top of things.
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[ctt template=”4″ link=”lavU4″ via=”yes” ]It’s safe to say that you have to be great with money when you work for yourself. Because now you’ve got the business' money to manage.[/ctt]
Managing Your Money When You Work For Yourself
- Track Your Income
The very first thing you need to make sure you do, is to start tracking your income. You may be okay with just checking your mobile banking app or logging in online to see what you’ve made. But, for your financial records and to help you to grow your income, you need to track what you make. Set up a spreadsheet or work with some finance software that can allow you to track what you make each month.
- Know What To Expense
On the flip side of that, you’re then going to want to make sure that you are also tracking your expenses. This is so that you can offset what you spend with what you make when it comes to tax time. But it also allows you to track your profits. So take a look at something like https://www.thebalancesmb.com/deductible-business-expenses-3192959 so you know what you can and cannot register as an expense. Also, be sure to keep your receipts in case you need them as proof.
- Have A Separate Account
For some people, mixing your business and personal finances may be fine. But this may mean that you get things confused. So, instead, you’ll want to think about opening up a separate account for your business income and expenses. You may find that you need to do this if your have your own business anyway. Either way, keeping things separate often makes them both easier to track.
- Have A Safety Net
It’s also a good idea to have a safety net. Sure you could hire a https://kansascityaccidentinjuryattorneys.com/practice_areas/kansas-city-car-accident-lawyers.cfm if you’re injured and cannot work. But it’s better to have money behind you just in case.
- Set Goals
Lastly, you’re absolutely going to want to make sure that you’re setting goals for yourself. And this should come in a range of forms. First of all, you will want to think about your overall income goals. If you set the bar, then you can keep yourself motivated and engaged when you’re tracking your income. But you may also want to set small milestones. If you have separate prices for your services or products, then setting goals for the number of sales you want to make can also help you to manage your income over a set period of time too.
This is a contributed post.
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