4 Tips to Managing Your Self Employment
Business Accountant in Framingham MA for Self-Employment
Operating your own business is amazing!
You can set your own hours and decide what tasks to complete first. Your work almost revolves around your personal life. But, this freedom can create a sense of uncertainty when your income is heavily based on your business. Issues like low income, unexpected losses, and taxes can discourage people from following their American dream. So, let’s create a plan that works! Follow these 4 tips to manage your self-employment success!
You need boundaries. Create them.
Your business may be generating a ton of revenue. That’s great! However, despite the temptation, set a firm budget. Your budget will keep you and your business afloat. This is where financial statements from a CPA is needed. Financial statements offer accurate insight to your business’s performance. And in all honesty, the budget pretty much covers your other 3 tips. You’ll see why.
Set your salary.
As mentioned above, your budget is essential and that covers your salary as well. Determine a modest monthly salary for yourself. One that covers personal expenses while allowing your personal savings account to grow. Remember, it may be tempting to give yourself a monthly bonus but do not give in to the temptation. Business security is more gratifying than a quick, short-term satisfaction.
Don’t forget about Uncle Sam and safety-nets.
It’s easy to forget to deduct taxes from your earnings. So, I suggest setting an appointment with a qualified CPA to help determine how much money to set aside for taxes. Self-employment can become a nightmare if taxes are not handled appropriately. Also, create a safety-net for you and your business. Six months worth of savings is a good rule of thumb. You never know what the future holds and secure savings account will offer relief.
What is your retirement plan?
There’s no doubt retirement is important regardless of your occupation. So, plan effectively. Meet with a financial advisor to develop a retirement plan that meets your needs. If you already have a retirement plan in effect, review it with a professional. Your future is important and having a financial security should be priority.
Business Accountant in Framingham MA | How did these tips help you today? Let us know in the comments below and share more. Also, contact us at ASH CPA Accounting & Tax Services in Framingham MA for a free consultation. We’ll help you organize your business’s finances or review your current accounting and bookkeeping methods. Just call (617) 462-6651, request an appointment online, or visit us at 945 Concord Street Suite 100 Framingham, MA 01701.