Best Practices for the Self-Employed (Or just me…)

If you are self-employed, you are well aware of the pros and cons:

I hadn’t planned on being self-employed, that’s just how it worked out. I realized I liked it way better than being “held hostage” by a company/boss. I also realized, though, that I’d much rather play than work. So without an actual boss to answer to, sometimes I’ve gotta give myself a pep talk and a swift kick in the arse to be productive. Here are some of the things that help me stay on track:

I am aware that is this regular business practice and common knowledge, but I majored in Exercise Science, not Business, Accounting, or Economics. I was slow on the uptake. This lesson was learned after my first really good year. I had made a lot of money, saved a lot for myself, then got blindsided by a HUGE tax bill. I was so bummed to see everything I’d put aside go straight to the IRS. When you run your own business, you get paid last. After that moment I had to switch things up. Money comes in, %30 goes straight into the tax savings account. Then I make sure I have everything I need to keep my business running smoothly: equipment for my bootcamp/clients, marketing materials, upkeep on my certifications/conferences/liability insurance, etc. Then other percentages go into my savings and retirement accounts. THEN I see what’s leftover. And that’s what I make for the month… Sometimes it’s a great month. Sometimes it’s not. But every month is in the black, not the red. So that’s always a good thing.

Do my business expenses the first week of every month, while I’m paying bills.

Business taxes used to drive me crazy… mostly because I did them once a year; on April 14th. I’ve since changed my ways, hired a CPA and keep really good records. Since I pay all my bills the first week of every month, I decided that I would also use that time to go ahead and record my expenses from the previous month. I can get all my spreadsheet ish done at one time (and usually in just half an hour or so), file the receipts away,  and not have to worry about it for a few more weeks. This is making tax time far less stressful!

Tackle the biggest obstacles first; before the end of the day Tuesday.

Sometimes, this just isn’t possible, but most of the time it is. So I put my head down and make it happen. By getting the most dreaded items checked off my to-do list first, the rest of the week seems far less daunting. When I’m really feelin’ good I go ahead and start the next week’s work early. It makes everything easier in the end.