Separate business/personal accounts?

[John Formsma]

This is a multi-part message in MIME format.

---------------------- multipart/alternative attachment
Richard,

 

I have two separate accounts. My business account is a DBA. One of the great
things you can do with this setup is to pay yourself from your business
account. I pay myself 75% of the gross business income. All operating
expenses are paid from the remainder, including all the quarterly tax
payments. (I heard about this from Dave Ramsey (radio financial guy)).  

 

Before I started doing this, I had only one account -- everything was so
mixed up and I dreaded tax time because I never had any set aside for the
quarterlies, and by April, was always scraping or using those stupid credit
cards. Now, there is always enough in the account to cover things that I
need, whether parts, supplies, gas, new computer, etc.

 

I haven't used Quicken, but assume it's similar to MS Money, which I use.
Theoretically, you could separate one account, but why? It doesn't cost
anything other than a set of checks to get a DBA going, and the benefits of
the separate account are numerous. Within my business account in Money, I
have different categories that make tax time super easy compared to how I
was doing it. Things like gas, parts, office expenses, etc. have been
subdivided into the categories that I'll have to give my accountant anyway.
Why not do categorize throughout the year rather than waiting 'til April 14
to do it all at once, right? I had lots of stress from doing it the other
way and finally decided to get organized. Have never regretted it.  :-)

 

Hope this helps,

 

John Formsma

 

  _____  

From: pianotech-bounces@ptg.org [mailto:pianotech-bounces@ptg.org] On Behalf
Of Richard Morgan
Sent: Tuesday, January 03, 2006 9:05 AM
To: pianotech@ptg.org
Subject: Separate business/personal accounts?

 

Hello, all.

 

I'm a new tuner, after years in academia, and newly returned to the
self-employed field.  How important is it to have a separate bank account
for my piano tech income?  Can I achieve an appropriate level of separation
using Quicken, and 'subdividing' my single bank account?

 

This list has already been marvelously instructive, even the very long
string following Susan's New Year's Rant.  As you might imagine, I am
struggling with how to price myself/my services.

 

I'll not respond to each response, but will appreciate the input each person
provides.

 

Thanks,

Richard


---------------------- multipart/alternative attachment
An HTML attachment was scrubbed...
URL: https://www.moypiano.com/ptg/pianotech.php/attachments/c5/d4/a6/45/attachment.htm

---------------------- multipart/alternative attachment--