Summary As a business-of-one, you will incur fixed costs that cannot be billed back to a client. You also may need to take care of expenses that used to be the role of an employer, like health care expenses, retirement funds, etc. Each of these fixed or variable costs drain income, and managing them well can lead to opportunities to write off expenses against your income bringing more money back into your pocket. ** Properly managing business expenses is not just good business, but also a good income strategy for a solo professional. As a business-of-one, you will incur fixed costs that cannot be billed back to a client. You also may need to take care of expenses that used to be the role of an employer, like health care expenses, retirement funds, etc. Each of these fixed or variable costs drain income, and managing them well can lead to opportunities to write off expenses against your income bringing more money back into your pocket. Let's talk about the categories of expenses you should make sure you are accounting for. These are all areas you should make sure you are keeping records and receipts for either through a business process outsourcing partner like MBO, or via your own accounting strategy. Coming Right Back At You: Costs of Communications:
Pay Yourself Back for Learning On The Job: Tuition and Training Dollars
Put Those Meals and Entertainment On the Books: Business Development Dollars
Promotion Pays: Marketing and Advertising Expenses
Taking the Hit out of Healthcare: Expensing Private Insurance
Home Alone: Get the Benefits Of Buying & Maintaining Home Office Equipment:
Running A One Person Show: Misc Office Costs
Keeping It Above Board: Write Off Against Professional Fees
At MBO Partners, our business managers help our consultants properly track and account for these expenses and see the income benefit at each paycheck, not just at the end of the year. That's worth it for busy solo businesses, and sure beats a 12-month pileup in a shoe box. ** Article extracted from MBO Partners official website.
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