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Independent Contractor Situations

Credit Co. Summary

Bill Payment Provider

IC-Home Edition

     

This is not Business Accounting
But, it tracks Rental Properties and side business

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
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
Manages multiple checking accounts
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
Individual tracking provides for the distinction of each item paid;
items carried to the appropriate report and the corresponding line for tax preparation reports
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
Individual tracking provides for the distinction of each item charged;
items carried to the appropriate report and the corresponding line for tax preparation reports
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
• 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
Individual tracking provides for the distinction of each item charged;
items carried to the appropriate report and the corresponding line for tax preparation reports
• 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?
• Nothing,
• they don't know about it
• Nothing,
• they don't know about it
Having a Cash Allowance item established, cash paid expenses are recorded and
the allowance is replenished;
items carried to the appropriate report and the corresponding line for tax preparation reports
Want to save money
• for Gifts,
• a new PC,
• new tools,
• non-monthly expenses,
License renewals
,
• yearly insurance premiums?
• Nothing,
• they don't know about it until an item is paid with a credit card
• Nothing,
• they don't know about it. 
• Banks suggest you have separate saving accounts for each
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 
• Want to Ease checkbook balancing ? • Nothing • Nothing;
• payments still need to be recorded in the checkbook and 
• Checking account balanced manually
Recording of payments generates an automatic check register and
balancing is just a few clicks;
checkbook balancing report printed with a click of the mouse
Accumulate money to pay taxes
• 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 
Establish a "Tax to be paid" expense item and money will be allocated to it
with each deposit