Home Business Start Up: Tracking Your Expenses
One of the most difficult things about having a Home Business Start Up, is keeping track of everything you do. After all, when you’re an employee in the workplace, your boss is the one who informs you of how things need to be done. When starting your own Home Business, however, you’re practically your own boss. You don’t have someone telling you to get back to work if you slack off, and no one informs you of when to take breaks, either. With that said, when Working from Home, nowhere is keeping track of what you do more important, than when dealing with Home Business Start Up expenses. After all, most employees in a company only think about their expenses, when receiving a paycheck or dealing with taxes. As someone who’s started a Home Business, why is keeping track of your company’s expenses important? Here are a few things to consider:
One reason why tracking your Home Business expenses is important, is because taxes are handled differently when Working from Home. When you are your own boss, especially for a writing job, taxes aren’t taken out when you get paid. When tax time comes around, you are required to pay self-employment tax. Also, the rate consists of two parts: 12.4% for social security (old-age, survivors, and disability insurance) and 2.9% for Medicare (hospital insurance). Always make sure to remember this, and start planning ahead long before tax season, as well. Failure to pay these expenses, could result in penalties from the IRS.
Aside from dealing with taxes, keeping track of your Home Business expenses is important, because it’ll help you to know if you’re reaching your goals. Don’t just aimlessly make a lot of money without having an end plan. For example, with your writing job, let’s say that you planned to make around two thousand dollars per month. Break this up into days and weeks, and set goals for those as well. How many hours do you plan to work per day? How much do you plan to work per week, and about how much will you make? Overall, these are some important things to keep in mind. Why else is keeping track of your Home Business expenses important?
#3. Self Discipline
Another reason you should track your company’s expenses when Working from Home, is because it’s an exercise in self-discipline. In fact, let’s look at it this way: When you’re an employee in a business, it’s much easier to be disciplined. After all, aside from having a boss telling you what to do, you know you can’t afford to slack off. If you do, you risk being fired. When Working from Home, however, you have to make sure you’re doing what you know needs to be accomplished. By keeping track of your expenses on a regular basis, it’ll eventually become a habit for you. Not to mention, it’s also an indicator that you’re taking your Home Business Start Up seriously. Before you know it, you’ll start noticing other ways you’re being diligent in your Home Business, and it’ll be easier to focus on your tasks.
As you can see, these are some reasons why tracking your Home Business expenses is important. On one hand, it helps you to keep track of what taxes you need to pay, and you also get a clearer vision of how much you’re making regularly. On the other hand, it’s also a great exercise in self-discipline.
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