Should I use business checks for work I do on the side or is it okay to use my personal checking account for such transactions? It's one of the most common questions asked, and often the one that gets the least amount of attention. It's only some work done on the side, a little extra money here and there.
The answer may not be that straightforward. Surprisingly, several ?little? amounts of extra money can add up to a lot of extra money over the course of a year. In the event of an audit from the tax man, that little bit of extra money on the side could result in a lot of extra money in penalties and fines, and nobody wants that.
In order to answer this question a little more thoroughly, first determine whether this is something that could indeed grow into a long term business. Would you even want to run your own business or are you happy working for someone else? If you enjoy the corporate world that you are a part of and the amount of payment is only a few hundred dollars or so, then chances are, you'll be fine using your personal checking account. If, however, you hope to eventually turn your little bit of extra work into a self sustaining small business, it's best to go ahead and utilize business checks for your transactions. Besides easing potential tax problems, doing so will allow your business to establish credit much earlier, which will always help in the long run.
Business Checks For Less
Starting up a new business can feel like a tenuous venture, particularly in this uncertain economic climate. It could be the best opportunity or the worse case scenario. Be aware that small details left unattended can turn into major problems. Not to paint a picture of doom and gloom, only pointing out that even seemingly small decisions can make a huge difference in your new business success.
One important decision with long term consequences is your accounting software. Deciding on what software you use to track your financial transactions and tracking your cash flow, is a major step. Knowing the bottom line, are you making a profit, do you have to funds to pay bills, and will you be able to submit appropriate tax records, is critical. The choices for financial software can be challenging as there are so many to pick from. One popular software package is QuickBooks, by Intuit. Most business find QuickBooks an easy and complete program, and, like the others, you can print checks directly from the software. The ability to generate computer checks saves time and helps ensure against mistakes in transferring information.
Using QuickBooks checks assures that all of the information, the recipient, amount, accounts, and dates are identical to the information for that transaction in your financial software. You are secure in the knowledge the printed business check numbers match the number it maintains in the online check register. You can create anticipated expenses to be distributed later. Computer printed business checks are more secure as they are machine readable and more difficult to alter should they fall into the wrong hands. Laser printed checks can put company? information, such as address and phone number, as well as check numbers and dates, in the hands of the client. This makes their record keeping more secure, and they have your contact info handy.
Where do you get your laser, computer business checks? That is the easy part! Check out Check-O-Matic online. They will have everything you need. Simply enter your business software, and a convenient list will appear. You can select color based on your business stationary and need only upload logos and company information once. All will be kept in their records for fast and easy reordering. All orders ship within 3-5 days; they guarantee. Check-O-Matic can make business checks the effortless, hassle free part of early business decisions.
Both Ken Charnley & Grojan Fabiola are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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