What Do I Need To Know Before I Start Working From Home?

When you start working from home, you are probably moving out of the arena of being an "employee" and becoming a "small business owner" or "self employed" or "investor" . It is critical that you know how you are getting paid for your services. As an employee, you knew that your employer had the responsibility of paying your cheque on payday. If you are running your own business, you are  now responsible for the financial side of the business.

Things to consider include:

• Are you being paid as an employee, or are you an investor, self employed, or a business owner?
• How does this money affect any other income that you earn or receive?
• What are your tax obligations?
• Find out about the tax benefits you can claim from working from home.
• What deadlines do you have to meet for tax payments or declarations?
• Should you employ a tax consultant, or accountant, or book-keeper?
• Find out the best way of setting up a business bank account, business credit card, and payment sites.
• Get advice on the best way to protect your business, set up a company and protect your family property in case of bankruptcy.

To understand the different income producing methods, read a book such as Robert Kiyosake's “Cashflow Quadrant” to understand income and wealth.

Don't get put off by the financial obligations. Once you understand them it will become second nature to keep receipts and record mileage.

If you are in the right business for you, it will be worth the effort.

And to clarify for the gentleman who came into my office one day, when asked about income, “under the table” is not a legitimate tax bracket. If you have a business you love, you don't want it spoiled by tax investigators asking for your “second set of books”.

Have a wonder-filled day.

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