Empowerment
Now it’s time for a challenge, Goddess.
Are you ready to make a big step for both you and your business?
OPEN A SEPARATE BANK ACCOUNT FOR YOUR BUSINESS.
This is a big step not because it involves going to the bank and setting it all up, but because this is going to make a shift in how you see yourself and your business.
First off, you never want to mix your personal finances with your business finances because this creates mess and confusion. It also creates a personal liability problem, and does not benefit your business's credit profile. Separating your personal and business finances allows you to treat and see your business as a separate entity from yourself while also protecting your personal finances.
Another reason this separation is beneficial is for taxes. Separate, identifiable business expenses are crucial when it comes to filing taxes, keeping track of receipts, and taking advantage of business tax deductions. Plus, the interest you pay on business financing is usually deductible, which is not true for most personal financing like credit cards.
Keeping all of your personal and business finances in one account is telling the universe that you are not serious. Not only are you telling the universe that you are not serious, but you are also telling yourself that too.
Having the money from your business going into your personal account is how you would treat a hobby. Goddess, your passion and drive to help others is not a hobby anymore, this is your business.
Create a separate account and tell the universe you are serious.
Your challenge is for you to open a business CHECKING & SAVINGS account by the end of our 16 weeks together. Choose a New Moon to open your account.
The CHECKING account is where all your business income will deposit. You will allocate funds from this account to pay yourself, your bills, any contractors or assistants, and save for taxes.
The SAVINGS account is where you will set aside a percentage for taxes, as well as a cushion for unexpected expenses.
A NOTE ON TAXES
If you are not factoring in the added business expense of paying taxes into your sales when charging your clients, then you need to be saving money from each sale or month to go towards your taxes each year. The amount you will charge or need to save will depend on your state and income bracket.
Saving money and planning ahead for taxes will save you from taking a big financial hit and also relieve stress.