Page 70 - Demo

FINANCES
As somebody that is self-employed, there are so many things that go into managing your business, and the financial aspect is extremely important to understand. "
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The saying, “If you want to make money, you have to spend money” is true! Expenses help you in the long run when you do your taxes.
You are your company: Personal budgeting is just as important as understanding your business expenses and general finances.
Maximize your knowledge: If you don't know what you’re spending vs making, then you will not know how much money you are making overall (what your business is worth).
Don’t wait: There’s no better time than now to truly understand your income and business overall. STAYING ORGANIZED
Get a separate debit or credit card for your business: There are specific credit cards that help businesses. You should be using a credit card whenever possible because they are the tool that gives you something in return when you spend money (for example, travel points, cashback, airmiles, rewards, etc). Do not use your debit card frequently - you are getting nothing in return (especially for business expenses).
Get a separate bank account and track your expenses: Every month you should be going through your accounts to see your expenses and understand the breakdown of your spending. Tracking your expenses helps you to determine what you should really be spending money on.
Perks of opening new accounts: Banks often provide benefits when setting up new accounts.
Maximize your write-offs: When you file your tax return, you can write off certain expenses to get money back.This means that your income is reduced because you get taxed on your income, but the CRA recognizes that businesses have expenses that offset income, which is why they allow tax write-offs.
Credit score and income: Ensure that your credit limit and balance is appropriate, and that the minimum income is met. There is a lot that goes into a credit score. Overall, it is a lender’s ability to calculate how well you can pay something back, and it is what makes you eligible for a loan. To keep it high, do not use more than 35% of your credit card limit (Canada) and consistently pay it off.
Use excel to break down your expenses into tax-related categories: For example, expense categories can be gas, auto, meals and entertainment, phone and internet, business-related travel, and miscellaneous such as clothing (only what you need for work) and makeup for your kit. Excel is a great tool for organizing this as there are templates for budgeting and expenses, or you can also create your own templates.
68 Credit to Jaanam Desai, CPA. For any questions finance-related questions contact: @boss.budgets or jaanam.desai@gmail.com
EXPENSES
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