All posts with tag Small Business
07 / 07 / 2020 in Business Basics

3 Things You Need to Know if You Became an Accidental Entrepreneur

Have you found yourself in the role of “Accidental Entrepreneur”?

 

This pandemic has had a HUGE impact on all of us, there is no question about that… So many of us have been affected, not just health-wise or mental health-wise, but also financially. Many people have been forced to get creative and start their own businesses, in order to survive during this time.

 

Here are 3 things YOU need to know if you have found yourself in the Accidental Entrepreneur space:

 

  • Start keeping an accurate record of your business income and expenses. Don’t wait until the end of the year. Don’t make the mistake of thinking it will magically happen on its own… because it won’t. Open up a simple spread sheet, and start categorizing your business-related income and expenses, TODAY!
  • This one is CRITICAL: Separate your business expenses from your personal ones. If you have another bank account strictly for business, USE IT. If you don’t, I highly recommend opening one as soon as possible. In the future, when you need to use money that your business has generated to pay personal expenses; just transfer that money from your business account into your personal account.
  • Track “mainly personal” expenses like rent, car payments, etc., separately. That will make it easier to appropriately break down the percentages at the end of the year, to ensure you are deducting those things properly.

 

These 3 simple things are by no means the ONLY things that you could be doing, as a new business owner; but it is sure to save you a world of headache and give you a pretty good place to start, if you’ve found yourself in the “Accidental Entrepreneur” space.

 

 

For more extensive detail on each of these steps, check out my most recent video, now available on my YouTube Channel… Click below to watch!

Please remember, information presented should not be construed as legal or tax advice. Consult your tax advisor about how this applies to your individual or business situation.


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