Independent Contractor
Situations |
Credit Co. Summary |
Bill Payment Provider |
IC-Home
Edition |
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This is not Business
Accounting But, it tracks Rental Properties and side
business
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Need to separate and, • group expenses
according to IRS tax reporting requirements • Year end requires
tabulation |
• Knows nothing about Independent
Contractor tax reporting • Can group some expenses if a separate Credit
Card is used only for IC expenses |
• Seldom used by Independent
Contractor • Expenses are reactionary usually based on need to advertise,
buy supplies or renew License |
• Individual tracking provides for
the distinction of each item paid; •
items carried to the appropriate report and the corresponding
line for tax preparation reports |
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• Keep
separate checking account
for Independent Contractor expenses according to IRS tax reporting
requirements
• Year end requires tabulation |
• Knows nothing about checking
accounts |
• Seldom used by Independent
Contractor • Expenses are reactionary usually based on need to advertise, buy supplies or
renew License |
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Manages multiple checking accounts |
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• Use
same checking account for
both personal and IC expenses • keep IC receipts separate • Year
end requires tabulation |
• Knows nothing about checking account
usage |
• May be used to pay some personal
bills • Not
applicable for most IC expenses |
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Individual tracking provides for
the distinction of each item paid; • items carried to
the appropriate report and the corresponding line for tax
preparation reports |
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• Have a
separate Credit Card for IC expenses but have only
one checking account
and pay the card from
that checking account • Year end requires tabulation |
• As long as the card is used diligently
only for IC, it can show year end summary by store type when it
knows. • Can't tell if office supply store purchase was for • advertising or office supply •
or training or licensing |
• Office expenses, •
advertising expenses, • purchase
job supplies and • Licensing expenses may be paid online but •
can't be scheduled |
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Individual tracking provides for
the distinction of each item charged; • items carried to
the appropriate report and the corresponding line for tax
preparation reports |
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Use same Credit Card for Personal
and IC expenses
• Need to separate Personal from
Business?
• Year end
requires tabulation |
• All Restaurants
grouped together • All Office Supply stores grouped
together • Can't tell which are business and which are
personal • Can't tell the business category |
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Show that Credit Card was
paid; • some show
total Restaurant expenses • some
show total Office supply expenses • Can't tell which are
business and which are personal • Can't tell the business
category
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Individual
tracking provides for the distinction of each item charged;
• items carried to the appropriate report and the corresponding
line for tax preparation reports
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Ever Pay Tolls or
Parking; • tipped a Bellman or • Luggage Handler; • buy
gasoline; •
pay for temporary help with Cash? •
Need to separate
Personal from Business or Home Improvement?
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Nothing, • they don't know about it |
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Nothing, • they don't know about it |
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Having a
Cash Allowance item established, cash paid expenses are recorded and
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the allowance is
replenished; • items carried to the
appropriate report and the corresponding line for tax preparation
reports
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• Want to save
money • for Gifts, • a new PC, • new tools,
• non-monthly expenses, • License renewals , •
yearly insurance premiums?
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Nothing, • they don't know about it until an
item is paid with a credit card
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• Nothing, • they don't know about it. • Banks suggest you have separate saving
accounts for each
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When a deposit is made, funds are factored
based on the target date and allocated to each expense; •
this is true whether it is a bill or a future
expense wish
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Want
to Ease checkbook
balancing ?
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Nothing |
• Nothing; • payments still need to be recorded in the checkbook
and • Checking account
balanced manually
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Recording
of payments generates an automatic check register and • balancing is just a few clicks;
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checkbook balancing report printed with a click of the
mouse
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• Accumulate money to
pay taxes
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Nothing |
• Nothing • Banks
suggest you have separate saving account to save for taxes |
• When a deposit is
made, funds are factored based on the target date and allocated to
each expense; •
this is true whether it is a bill or a future expense wish
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Establish a "Tax to be paid" expense item and money will be
allocated to it with each
deposit
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