As a CPA, I worry about entrepreneurs more than ever.
One thing I’ve noticed when talking to a lot of entrepreneurs is they aren't all sure that’s what they are. So, let me clarify – if you make any side income that doesn’t go on a paycheck with taxes taken out – you are self-employed!
This goes for people who drive for Uber, deliver for Instacart, sell products through a direct sales or MLM company, sell items on Esty (or any other online platform), and so on. If you earn money directly from your own customers or clients or if you receive a 1099 at the end of the year because you were paid as an independent contractor – you are self-employed as far as the IRS is concerned, and there’s definitely more to it than the simplicity of being an employee.
Being self-employed is amazing and I’m a passionate supporter of entrepreneurship. I love seeing people believe in themselves, take a leap of faith and put...
So you started out in business on your own?
I've been in your shoes. Entrepreneurship gives you all the emotions. Excitement, fear, anxiety, empowerment. You're learning new things every day and hustling hard to get your product or service out to the world and start bringing in the moo-lah so you can pay the bills and work towards financial freedom.
It's busy. It's exciting. And it can be really overwhelming.
Am I right?
If you're like most of my friends starting out on their own, I bet there's one part of your business that's hanging out on the back burner - the numbers side of things.
Look - I get it. The numbers side of your business isn't the fun part. It's not your passion, it's not going to get you any likes or attention, and it seems like it can wait. It's easy to neglect, especially if it overwhelms you as it is.
Waiting around does not make this responsibility go away. If you're neglecting the...