As a work-from-home business owner, I’ve had to change my overall mindset about what I do. For the past five years, I’ve viewed my work as a freelance writer/editor as a side job, or something I just do to pay the bills while I wait for my kids to go to school. At the beginning of the year, I starting making an intentional shift in my thinking. Rather than thinking of myself as a writer/editor, I’ve decided to think of myself as a business owner whose business happens to be writing/editing.
I received this lightning bolt idea from the book: Start your own freelance writing business and more : copywriter, proofreader, copy editor, journalist by George Sheldon. This is a good book with some very practical information. (See my resource page for more places to find information.) This shift in thinking has helped me a lot as I make plans for my financial future, but it can only help if I make real changes to the way I do things.
That’s what has forced me put another project on my task list. After some research, it is greatly encouraged for small business owners to open a separate bank account for the business. I have read this for years, and have yet to actually do it. The reasons why I’ve chosen to do it now are listed below.
1. It will help with budgeting. When I get a large check and put it in the family account, it can be used up quickly. This cause a financial crunch down the road when payments aren’t exactly rolling in. Placing the money in a business account and paying myself a set amount of money each month can help stretch the payments farther.
2. It will help me keep track of my business expenses. Using the family account to pay for business items can get confusing. Plus I may not always keep track of what I’m paying. If it all comes from the business account, I have the numbers available for tax purposes and for self-evaluation.
3. It will prepare me for budgeting issues and changing the account to a commerce account as my business grows. In the future I hope to be handling larger accounts and processing bigger payments. The business account will need to be in place for that to happen.
So, here I go…building my business from the ground up—one tiny brick at a time. I’ll keep you posted on how it goes.