spreadsheet for independent contractor expenses

Spreadsheet for independent contractor expenses how to#

If you catch yourself putting a personal purchase on a business card, make sure you reimburse the money into the proper account as soon as you realize your mistake. Since you’re self-employed, it’s easier than other business scenarios to commingle personal and business expenses. This can lead, at the very least, to major headaches but usually to worse negative effects to your finances, so you need to fix the situation as soon as you catch it. Spending CarefullyĪ business credit card is convenient, but there’s always the chance you might accidentally use it for personal needs. If you’d prefer to get some money back instead of airline points, find a card with a cashback program instead. So, if you travel a lot for work, you might want to get a card that allows you to earn airline miles every time you spend. Plenty of business credit cards also offer incentives and rewards. Some cards actually offer a credit limit of well over $50,000. If you spend a lot of money to keep your business going, choose a card that has a higher credit limit. So, you’ll want to do some comparison research before applying for a card. Just like personal credit cards, no two business credit cards are the same. You can even link the card to your business bank account and make paying your bills even easier. You can prove what you spent your money on and how much you spent, without having to keep your paper receipts! The best aspect of business credit cards is that they keep all of your expenses in one place. Subscriptions for industry-related media (i.e., magazines or newspapers).That’s especially the case if there are possible deductions that you can claim on your taxes.įor example, you might be eligible for the following tax credits and deductions: If you’re in a field where you have to spend a little money to make a lot of money, having a business credit card is your best bet. Though credit unions offer great opportunities, you need to do what’s best for your own business and career. Getting a loan tends to be much easier with a credit union, too. Interest rates are high on deposits and generally low on loans. They also tend to limit the fees associated with having an account, and the interest rates are hard to beat.

That means they can offer incredible customer service without pressuring you into making a financial decision that benefits them. Unlike banks, credit unions are not-for-profit organizations. They don’t just hand out accounts to anybody that applies. What makes credit unions so unique are the strict membership requirements. Most people automatically head to the local bank to open a business bank account.īut, there might be a better option: credit unions. If there is a minimum account balance, make sure you’re able to meet it consistently. They’re usually about $20 or less per month. Make it a point to factor your monthly fees into your budget. Keep in mind that there are fees associated with having a business account. You don’t need to have a separate business entity, but, if you have an LLC, you’ll also need documentation to prove that (i.e., a business license). The most important documents include your Social Security card and a valid driver’s license. So, what do you need to open a business bank account? However, business accounts tend to have slightly higher monthly fees. You can store and access your own funds in both of them. There’s not too much of a difference between business and personal bank accounts.

Spreadsheet for independent contractor expenses how to#

No more endless hours of math trying to decipher between business and personal spending! How to Open a Separate Business Bank Account Come tax time, all of your income and expense records will be in one place. You won’t have to worry about the commingling of your personal and business funds, and tax season is no longer your worst enemy. Opening a separate business bank account can make your life a whole lot easier. That’s because you’re not getting a weekly or biweekly paycheck with your taxes taken out. When you’re a self-employed person or small business owner, it’s your responsibility to track your cash flow. Keeping/Recording All Business Receipts & Expenses Tracking Your Business Mileage & TravelsĤ. More specifically, we’re going to talk about:ģ.