What Are The Top 10 Things To Know When It Comes To Managing Your Business Finances?
Ask Andi: Biz Finance Advice for Solopreneurs
English - December 31, 2019 17:00 - 31 minutes - 51.5 MB - ★★★★★ - 22 ratingsEntrepreneurship Business Management accounting entrepreneur finance quickbooks smallbusiness smallbusinessowners Homepage Download Apple Podcasts Google Podcasts Overcast Castro Pocket Casts RSS feed
Business finances can seem daunting, especially if you are new to the self-employed world. The truth is that you need to know your numbers and it’s best to start tracking them from the very beginning. I’ve created a list of the top 10 things you need to know and do when it comes to managing your business finances along with my biz survival kit that will ensure you are not only tracking your finances, but understanding them as well and saving for tax time. If you put practices in place, then your finances won’t scare or overwhelm you.
Treat your money the way you treat your friends.
What we’re talking about
Top 10 Things To Know About Managing Your Business Finances What You Need To Know About Self-Employment Taxes Treating Your Money The Way You Treat Your FriendsTop 10 Things To Know About Managing Your Business Finances
We are diving into the 10 things you need to know starting from day 1 in your business. 1) Track your numbers. 2) Separate your business and personal finances. 3) Centralize your business finances. 4) Taxes are expensive. 5) Know your tax deductions. 6) Save for your taxes monthly. 7) Digital bookkeeping programs are a life-saver. 8) Do your bookkeeping weekly. 9) Review your numbers. 10) Treat your money like you would treat a friend.
What You Need To Know About Self-Employment Taxes
Self-employment taxes may come as a surprise to those who are new to it because of how expensive they are, but if you know your deductions, you can reduce your taxes. Self-employment tax is 15.3% of your net earnings and this is in addition to your income tax. A good rule of thumb is to set aside 25-30% every month for taxes so that you aren’t surprised when it comes time to pay them. If you know your tax deductions, then you can also calculate what you’ll be taxed on.
Treating Your Money The Way You Treat Your Friends
If you treat your money the way you treat your friends, then you should have a healthy relationship with it. Schedule time every week to review your finances and don’t flake on it. You wouldn’t cancel last minute on a friend for meeting up and not reschedule, so don’t do it to your money. Your money does a lot for you and the way you talk about money is a reflection of how you feel towards it. It’s important to learn how to understand your finances and make your money work for you.
Do you know your numbers?
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