5 Financial Tips for business owners – Tip #5
In the mist of Covid-19 (Corona Virus), we at JDS WebDesign are hoping everyone is safe and practicing social distancing. Over the next several weeks, we are planning on blogging about how to make your website more business friendly. We will have some tutorials on our favorite plugins and features, which will make your site more efficient.
Over the past several weeks, I have outlined some financial tips to assist you and your freelance business. Note I am not a certified public accountant (CPA) or an attorney, these tips have help me to stay in business for over 10 years. I would recommend you seek professional advice, these are just tips which has help me.
In the past several weeks, I have discuss Profit and Loss Statements, Applications and Tools to assist you, how Income is not the only factor to your success, and the importance of paying the Internal Revenue Service quarterly. In this blog, I am going to discuss keeping your business accounts separate from your personal account.
Business is not personal
I have been blessed to have a business mentor early in my entrepreneur life. One of my first lessons, was he told me that he would need $5.00 for each counseling services. I took out my personal checking account and wrote a check for $5.00. He always provided me with great information, and he always left the $5.00 check. After about three sessions, I asked him. “How come you keep leaving my checks?”. His answer hurt my feelings, but was the news that I needed to hear. “You are not serious about your business, if you was…then you would have a business check.” I need to register with my state. I need to have articles and this and that. “So you need to hire a certified public accountant and attorney. I have a couple of recommendations.”
Now I am not saying you need to hire a certified public accountant or attorney. But you will need to get you a business account, and most financial institutions will need some verification that your account is for a business.
When you are beginning your journey, remember that this is your business. You need to make sure that your business is separate from your personal life. When it is time to file your taxes, you do not have to worry about what was for business and what was for personal.
Get serious about your business. Taking your business serious is your business first lesson. If you are not serious about your business, then who will. I remember once talking to a potential client and gave him the down payment amount. He asked his girlfriend to write a check in the amount. I knew at that moment, that he was not serious. Needless to say, this was not a successful project. We did not even get it off the ground, because he was not serious about his business.
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