Steps To Having A Successful Home Business - Part 5

When you open your account, you may need to show the assumed name certificate and business license.

Finally, investigate obtaining a credit card in the business’s name. If this is not possible, set aside a personal credit card to use for business expenses.

STEP #14 KEEP THE RECORDS ORGANIZED

A simple yet efficient bookkeeping system with an 8 1/2 x 11″ three-ring binder, columnar pad sheets and twelve pocket dividers could save you the trouble cluttered paperwork can bring. These models can be purchased at office furniture stores that can keep you organized round the clock. Set up columnar sheets for income and expenses and use a pocket divider for each month’s receipts, bank statement, deposit tickets, and canceled checks.

STEP #15 KEEP IN MIND REQUIREMENTS OF THE IRS

Comply with basic IRS guidelines and deduct a percentage of normal household expenses like mortgages, interests, taxes, insurance, utilities, repairs and the like as a business expense. Also become familiar with these IRS forms: Schedule SE (compensation of Social Security Self-Employment Tax) and Schedule 1040 ES (estimated Tax for Individuals). Depending on circumstances, you may have to file them.

STEP #16 EQUIP THE HOME OFFICE

Prepare a list of things that are must haves before actually purchasing anything. It is better to first scour the house and look for materials that are usable. For example, you can cut half your expenses if ever you would find functional typewriters, personal computers, answering machines and many other used components that can be added to the office. Also, check the classified ads and garage sales for inexpensive office chairs and desks which are adequate for your space. Remember, this is just for the start up. Once the business expands who continually add the things that you want.

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Steps To Having A Successful Home Business - Part 5

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