You should have a different checking account for the company. Keeping your bank accounts well-separated avoids any possible confusion, and makes it easier for you to keep track of business profits and expenditures. The more firmly-separated your business and personal finances are, the easier it will be to do your taxes. If your business taxes are simple, you are less likely to make silly mistakes.
As a sole business owner, be sure you control all financial decisions. Consider the choice to hand out your company credit card carefully, as your ability to include purchases in a tax write off may be negatively influenced. As a business owner, it is important that you track the mileage of your business-related driving. When you run your own business, your tax situation will change. For one thing, you will be able to deduct business mileage expenses. If your line of work requires you to travel frequently, your savings could be substantial. Do appropriate background checks on potential employees. Likewise, verify their employment references. It’s important to check out a potential employee’s background to ensure that they know what they’re doing and aren’t likely to flake out on you.
When you have your home business in operation, always keep a record of any traveling that you do for business purposes. As an entrepreneur, your tax status allows you to deduct driving expenses that stem from business operations. By claiming your business travel expenses on your taxes, you can save a lot of money.