Episode 20: Reframing Freelance Finances with Gina Knox
If you dread the math and accounting part of entrepreneurship, this is the episode for you. Today I talk with Gina Knox, who is a financial coach for entrepreneurs. She brings a wealth of knowledge to the table that will benefit you no matter what stage of entrepreneurship you’re at -- especially around tax time. We talk about addressing fears around finance, what you actually need to keep up with your small business bookkeeping, and what numbers you will need for tax season.
I hope this episode gives you the right balance of positivity and useful information to move forward with confidence in your freelance finances. In an area that tends to cause a lot of undue stress for many entrepreneurs, especially at the beginning of their journey, I hope Gina’s knowledge helps to simplify and demystify accounting and save you a lot of time and money in the long run.
Here are some things I’ve learned:
Get separate bank accounts for your business and personal finances, even if you only have one client!
Owner’s investments into your business (equity) are not taxable. In the very beginning, keep track of how much you are spending on your business.
You only need a simple spreadsheet, which is free, to keep track of your business finances, especially if you have only a few transactions per month.
This spreadsheet needs to track how much money you brought in, how much money went out, and what tax category your expenses fell under.
Choose a cadence that works for you (daily, weekly, monthly, or quarterly) to sit down and organize your transactions.
All the government wants to know for tax time is how much money your business made, how much money your business spent, and what category your expenses fell under (on your Schedule C).
An unofficial rule of thumb is to save your receipts on expenses $75 and above. Hold onto these receipts for up to 7 years in case you are audited by the IRS.
Resources from this episode:
Connect with Gina: https://www.6figuresaver.com/
Be sure to grab my free guide on crafting your mission statement!
Book a call with me: https://calendly.com/nicole-ralston/30-minute-consult
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