At the very least, you should have a bank account created solely for your business use. Don’t blur the line between your money and your business’s money, as it can allow you to fall into the trap of spending everything that you make.
Organize a main business bank account, and then draw on that account for your own wages—a weekly or fortnightly transfer to another personal account does the trick.
Then, ensure that a percentage of the income being deposited into this business account is never touched. This will allow a small amount to grow into something that can be used for larger capital expenses down the track, such as a new laptop or color laser printer.
It’s also wise to consider having yet another account for items that need to be paid regularly but infrequently, such as taxes and superannuation—this way, when tax time comes, you won’t need to struggle to find the money. Work out what income tax rate you’ll most likely need to pay, and consider automatic transferral of that percentage from any income into this account.
Don’t be shy about applying for a loan to help sort out your start-up costs. Many people find it very hard to fund the costs of starting up from the meager income they make in those first few months. It’s a shame for lack of funds to hold you back, if you have to turn down projects because you don’t have the right software or hardware, and it’s probably avoidable if you have a decent credit history. It’s crucial, of course, to make sure that you can meet the repayments.
3 http://www.istockphoto.com/
4 http://www.bigstockphoto.com/
5 http://www.redbubble.com/
6 http://www.spreadshirt.com/
If you do get a loan at any stage, make sure that the loan is serviced from your business account, and treat it as a company expense. Blurring the line between personal and business money will cause headaches at tax time, and adds unnecessary complexity to your bookkeeping.
Organize a main business bank account, and then draw on that account for your own wages—a weekly or fortnightly transfer to another personal account does the trick.
Then, ensure that a percentage of the income being deposited into this business account is never touched. This will allow a small amount to grow into something that can be used for larger capital expenses down the track, such as a new laptop or color laser printer.
It’s also wise to consider having yet another account for items that need to be paid regularly but infrequently, such as taxes and superannuation—this way, when tax time comes, you won’t need to struggle to find the money. Work out what income tax rate you’ll most likely need to pay, and consider automatic transferral of that percentage from any income into this account.
Don’t be shy about applying for a loan to help sort out your start-up costs. Many people find it very hard to fund the costs of starting up from the meager income they make in those first few months. It’s a shame for lack of funds to hold you back, if you have to turn down projects because you don’t have the right software or hardware, and it’s probably avoidable if you have a decent credit history. It’s crucial, of course, to make sure that you can meet the repayments.
3 http://www.istockphoto.com/
4 http://www.bigstockphoto.com/
5 http://www.redbubble.com/
6 http://www.spreadshirt.com/
If you do get a loan at any stage, make sure that the loan is serviced from your business account, and treat it as a company expense. Blurring the line between personal and business money will cause headaches at tax time, and adds unnecessary complexity to your bookkeeping.
0 comments:
Post a Comment