Page 15 - THE NOTICEBOARD EDITION 62 SEPTEMBER 2020

September, 2020 Page 15

How to Pay Yourself as a Sole Proprietor

Continued from pg 14
The software can help you
easily keep track of your
expenses by automatically
pulling in your bank and card
statements. Also, you can

categorize payments to
yourself as "owner's equity"
or "disbursements" so that

you know exactly how much
you are paid each year.

Accounting software lets

you easily calculate how
much to pay yourself, and
how much you owe in taxes.
is that you must list your expenses just like any other
The Software lets you
business's profit or loss business. You are allowed to
manage your income and
information on Schedule C expense (deduct) much of the
expenses, and keeps things
(Profit or Loss from a money you spend in pursuit of
simple. You should have
Business), which you will profit, including operating
everything about the health
submit to the IRS along with expenses, product and
and success of your
Form 1040. advertising costs, travel
business right at your
expenses, and some of the
fingertips, so you can stay
You'll be taxed on all profits cost of business-related
focused on running the
of the business -- that's total meals. You can also write off
company and living your life.
income minus expenses -- certain start-up costs and the
Jaxson Khan
regardless of how much cost of business equipment

money you actually withdraw and other assets you purchase
from the business. In other for your business.
words, even if you leave Please call us if
money in the company's bank How to keep track of your
you want your
account at the end of the finances
year (for instance, to cover While a sole proprietorship is
future expenses or expand the simplest business business featured
the business), you must pay structure, you'll still want to

taxes on that money. make managing your books as
easy as possible with an here.
You can deduct your business accounting software.

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