Working from home is no longer taboo. In fact, it’s become extremely common for millions of people – thanks in part to technology that’s made it possible to communicate and collaborate with anyone around the world.

While working from home can be a blessing, it can also be curse if you’re not prepared. That’s understandable if you’re new to this lifestyle.

If you’re in that situation, I’ve put together these 11 productivity hackers for work from home newbies.

1. Know when you’re most productive.

While there is evidence that waking-up early can influence success. The truth is that not every everyone is cut out to wake-up at the ungodly hour or 4am. Some are not built to exercise, send-out emails, and start diving into work before 8am.

The secret to working from home is knowing the best time of day to work. This will ensure that you’re not only productive, but that you can do more quality work.

Not sure when this is?

Here’s a couple of pointers to figure that out.

  • Ask these two questions; When do I have the most amount of energy and concentration? and When are there the fewest interruptions and distractions?
  • Carve out one to three 90-minute periods, which will be your productive bursts.
  • Prioritize your tasks. Do your most important and challenging tasks first when you have the most energy.
  • Embrace interruptions at the right time. For example, use your lunch break to run errands, do household chores, respond to emails, or play with your dog. You’ll be energized when you get back.
  • Be creative with your schedule. If you want to sleep-in until 10am and work from noon to 8pm, do that. Work when you are at your best. Remember, you’re not tied to the traditional 9-to-5 workday anymore.

2. Keep your days like traditional work days.

This doesn’t mean that you start work at 9am and stop at 5pm. After all, we’ve already established that those may not be your most productive times to work.

What this means is that like a traditional 9-to-5 gig, you keep a consistent schedule where you start and end work at a specific time. If not, you’ll be on call 24/7. It’s the ultimate guaranteed ticket to a place known as Burntoutville. I don’t recommend visiting that place anytime soon. Don’t. Just don’t.

If you start work at 7am, take a break around 3pm if you want to spend time with your kids when they get home from school. Even if you go back to work, make sure that you shut everything down around 6pm so that you can eat dinner and put your kids to bed.

3. Learn keyboard shortcuts.

This may not seem like that big of a deal, but this hack can save you time, boost your productivity, improve your efficiency, and prevent your arms from getting tired. This is a big deal when you’re writing on a daily basis.

Different operating systems have varying shortcut keys, but the fine folks at Computer Hope put together a handy list to get you started.

4. Use the tools that work best for you.

There’s no shortage of tools that can assist you in time-tracking, scheduling your day. Jotting down to-do lists, communicating with clients, and even blocking out distractions is helpful. The trick is to find a mix of tools that work for you.

For example, my colleagues and I used Insightly to collaborate with each other and check off completed assignments. I’m sure that it’s a great tool for larger organizations.

But for our small team it was too time-consuming. We switched over to Slack, which was more ideal, and less time consuming, for us.

When starting out, think about what areas you need assistance with. For instance, do you have hard time keeping track of all of your passwords? Then compare tools like LastPass and experiment with them until you find the tool that works best for you.

5. Set social media and email check-in times.

Unless your job involves staying connected to social media, only schedule specific times to check your social media accounts and emails. If not, you’ll be constantly distracted whenever you receive a notification.

Most successful people check their social channels and emails at set times. Choose first thing in the morning, during your lunch break, and at the end of the day.

Also, don’t check your phone for messages directly before bed. This can have a negative impact on your sleep.

Again, shut down your workday at a specific time – and that includes checking into your social channels and email accounts.

6. Schedule meetings.

This might seem counter-intuitive. After all, meetings can tend to be a waste of time – especially when you work remotely.

In reality, scheduling meetings can be beneficial since they’re a quick and effective way to either solve a problem or build a process.

Instead of going back-and-forth via email or playing phone tag with a client or colleague, schedule a one hour meeting. Everything that needs to be discussed regarding a project can usually be covered.

This way you will complete the project sooner.

7. Follow the two-minute rule.

It there is a task that’s going to take two-minutes or less to complete, then do it immediately. Don’t waste your time or energy writing down these tasks down either.

Just get them done immediately so that your attention and energy is saved for more important jobs.

8. Don’t rule out all distractions.

Peace and quiet sounds like an ideal work situation, right? In actuality, we all need a little background noise and distractions from time-to-time.

For some of us, white noise can be beneficial, like improving productivity and boosting creativity. It just depends on the type of noise and how loud it is.

In other words, a little bit of background noise and minor distractions can be an assist when you’re working from home. The TV on is generally not recommended.

9. Take proper breaks.

Speaking of distractions, taking micro breaks throughout the day. Your brain needs short periods of rest. This prepares your brain so that it can regain focus and recharge.

study from Emily Hunter, Ph.D., and Cindy Wu, Ph.D., associate professors of management in Baylor University’s Hankamer School of Business, found that the most beneficial time to take a workday break is mid-morning.

“We found that when more hours had elapsed since the beginning of the work shift, fewer resources and more symptoms of poor health were reported after a break,” the study says. “Therefore, breaks later in the day seem to be less effective.”

Additionally, the research found that better breaks involve activities that people enjoy.

“Finding something on your break that you prefer to do — something that’s not given to you or assigned to you. [These are the] kinds of activities that are going to make your breaks much more restful. [They] provide better recovery and help you come back to work stronger,” Hunter said.

10. Harness the power of flexibility.

While you should create and try to stick to a schedule, the fact of the matter is that you have a flexible schedule. If I decide to take the day off and go to the beach, I can afford that luxury. It just means that the next day I may be putting in 10 or more hours.

This is a surefire way to maintain a healthy work-life balance and prevent you from getting burnt out.

11. Design an inspiring home office.

Whether if you’re working from the kitchen table, cafe table on the patio, or in a dedicated home office, your workspace should be free of clutter, comfortable, and be inspiring.

This means that is should be free of distractions, has the proper lighting and coloring, and contains items that spark your productivity. Items like plants and knick knacks that display your personality provide all kinds of benefits.

 

This article was originally published on Due by John Rampton.

The post 11 Productivity Hacks for Work From Home Newbies That Make Six Plus Figures appeared first on KillerStartups.

So, you want to start a business. That’s great! Starting a business can be a great way to make extra money, achieve financial independence, and live your desired lifestyle.

However, before you start things off, it’s important to know a few things. Starting a business isn’t always the glamorous lifestyle you’ve heard of. Here are five things to keep in mind as you move forward:

1. You Have to Know the Right Business for You

Before starting a business, you should know what is likely to be right for you. Not everyone does well in a brick and mortar location. Some people aren’t cut out for business models that involve freelancing.

There are a lot of potential business models and plenty of ideas for budding entrepreneurs. Do the research. Know what’s right for you. Pursue a business idea that offers you a better chance of success.

2. You Need to Know the Purpose of Your Business

Does your business have a purpose? Are you solving a problem? Are you making people’s lives better?

Understanding your purpose is vital when starting a business. You should know the “why” behind what you do. It’s not enough to just want to make money. You should have a clear idea of why you are going into business — and why the model you choose is the right one.

When you understand your purpose as a business owner, you are more likely to stick with it and succeed.

3. You Need to Know the Basics of Accounting and Finance

A basic knowledge of finance and accounting can be a big help when starting a business. This includes understanding how to limit your debt, manage cash flow, and other concepts.

Before starting a business, brush up basic money management concepts, as well as business basics. When you start on a solid foundation, you are less likely to have serious problems later.

Plus, it can help you get your own personal finances in order before you take the plunge. Having your own financial house in order is vital, and you also need to make sure you keep your personal and business finances separate.

4. You Should Know How Your Family Will Operate as You’re Starting a Business

Too often, entrepreneurs jump in without thinking about the impacts on their families. However, before you start a business, you should sit down with your life partner. Talk about the realities and the sacrifices.

You also need to set boundaries for your work. It’s easy to get caught up in entrepreneurship, but you also need to maintain a work-life balance. You don’t want your personal relationships to fall apart — especially those important family relationships. Know how to handle this ahead of time.

5. You Need to Know the End Game

Finally, make sure you understand the end game. Do you plan to build a business you can sell to someone else? Do you hope to start a small solopreneur or lifestyle business that you can run yourself, with no plans to scale up? Are you planning to pass the business on to your kids?

Understanding the end game now can help you build the right kind of business structure and plan for succession if necessary. Pay attention at the start of your business journey, and you will be better positioned for success later.

 

5 Things You Must Know Before Starting a Business was originally published on Due by Miranda Marquit.

The post 5 Things You Must Know Before Starting a Business appeared first on KillerStartups.

Did you know that 90% of all invoices worldwide are still processed manually? I personally have been a little taken back by those stats as that really sucks. The true cost of an invoice is costing business owners millions in non-payment. That being said, there are vast amounts of benefits to electronic invoicing. The main point seems to be decreasing the amount of repetitive and time-consuming tasks involved with creating invoices. There is also a noted improvement in cash flow.

With the accessibility of cloud-based platforms, and government initiatives, it is predicted that more businesses will jumped on the e-invoicing bandwagon. Maybe some businesses won’t make the switch until they realize how much an invoice actually costs their small business.

The True Cost of an Invoice

There isn’t one exact figure to give us the cost of manual invoices. Various experts, like Sterling Commerce, have found that the average cost of a paper invoice can range anywhere between $12 to $30.

Concur states that on average its costs $12.90 to process a single invoice. The Accounts Payable Network, via Beanworks, notes that the average cost to process a single invoice is closer to $15.

However, companies with a more complex AP process can expect costs to peak at nearly $40 per invoice.

The experts listed above have agreed that automated invoicing is significantly cheaper. Sterling states that fully-automated invoices cost just $3.50 per invoice to process.

Concur notes that automation “delivers an average of 29% reduction in invoice processing costs, which can translate to $300,000 per year for an organization that processes up to 10,000 invoices per month.”

However, the Accounts Payable Network claims that automaton has “significant savings of 60-80% over manual processing with average per invoice costs lowered to $5 or less per invoice.”

Regardless of the exact figure, it doesn’t take a ton of data to realize that manually processing invoices is a pricey endeavor.

The following gives some valid reasons:

  • Direct Costs

    These are the costs related to the paper, ink, and postage costs involved with paper invoices. This will vary from business to business, but it’s going to set you back 47 cents just to mail a first class letter. That doesn’t send like much, but if you’re sending out 10 invoices a week that adds up.
    If you want to figure out how much it costs you to print each page, Chron.com can stir you in the right direction. With e-invoicing, you don’t have these costs since they’re sent electronically.

  • Indirect Costs

    These are the expenses needed to complete a task. There is paying an employee to put paper invoices into envelopes. The time it takes you to enter all the relevant data needed to produce an invoice, like the client’s name, address.
    Itemized list of services or products provided take time to set up.

  • Hidden Costs

    There could potentially be several hidden costs when it comes to invoicing. Invoice lag creates a negative cash flow. It takes days for the client to receive, review, and send back a bill via snail mail. In the meantime, you don’t have the money to pay an expense and are charged a late fee.Electronic invoices can be paid almost instantly. Furthermore, what if there is an error? This could be resolved in a matter of minutes with electronic invoicing. It’s also been found that it costs over $50 to rectify these errors.
    Paper AP invoices cost on average $3.90 and paper AR invoices $1.90 each to store. Investing in cabinets, scanners, and paying someone to organize the bills add up. Since electronic invoices are stored on the cloud, it’s only going to cost you around $1.30.

If you want to calculate your costs of invoice processing, review the following seven factors:

  • The time it takes to process and mail the invoices.
  • How many hours are spent reviewing each invoice.
  • How many hours you spend finding and correcting data entry errors.
  • The cost to ship and store each invoice.
  • How many hours of productivity you have lost invoicing.
  • How much you lost on early-discounts or were charged late fees.

After reviewing these factors, you can use this formula to come up with an estimate:

Personnel costs + late fees + lost discounts + postage costs + storage costs / # of invoices processed = cost per invoice

Ditch the Paper Invoice

If you want to save money, and a ton of time, then you need to ditch the paper invoices.

It reduces the costs associated with paper, ink, and postage. The real cost saver, however, is that it eliminates the need for someone to create, process, manage, and organize all of your bills.

This means you either don’t need to hire someone like a bookkeeper or you can focus on more enjoyable tasks like growing your business.

E-invoicing speeds-up your cash flow and is securely backed-up on the cloud for easy retrieval. It is extremely beneficial for the environment since it decreases the amount of trees being used for paper and the carbon emissions from postage.

 

The True Cost of an Invoice to Small Business Owners was originally published on Due by Max Palmer.

The post The True Cost of an Invoice to Small Business Owners appeared first on KillerStartups.

If you’re a Millennial, it’s understandable why you may not be as optimistic about the future as you would like to be. Part of this fact is because you remember the Great Recession all too well.

Much to your credit, you are highly educated, but you also earn less than previous generations. How much less? Roughly 20% less than Boomers did.

Analysis of Federal Reserve data by the advocacy group, Young Invincibles, indicates Millennials median household income is $40,581. Crunching some figures from the Bureau of Labor Statistics, SmartAsset shows a different story.

Millennials who were between 16 and 34 in 2015 had an average salary of $684 per week or $35,592 per year. But, ultimately that varies depending on where they live in the U.S.

Either figure won’t take Millennials too far. Some are bogged down with loans and rents that can top six figures in major cities.

Additionally, according to Mother Jones, Millennials spend more on these annual expenses than young families of the 80s and 90:

  • About $1,000 more on health care.
  • About $1,500 more on pensions and Social Security.
  • About $2,000 more on overall housing (rent, maintenance, utilities, etc.).
  • About $700 more on education.

But, it’s not all doom and gloom for Millennials. The fact that they make less than their parents is a serious concern. But Millennials have a different mindset when it comes to money. Millennials have a unique way of unlocking true earning potential and can enjoy a happy and fulfilling life.

The Millennial Mindset

As mentioned above, Millennials came of age during the Great Recession so it’s still fresh in their minds. This recession influenced how they view money. They realize how to be financial stability, and they think quick on their feet. The whole world is changing because of the changed priorities of the Millennial.

This age group wants to have experiences with their friends. They reject materialism projects and are proud members of the sharing economy. They’re frugal and excel at saving for long-term for financial freedom instead of retirement.

Millennials Are More Socially Conscious

They want to be involved in a socially responsible workplace that cares about and offers work-life balance. The Millennial will even take a pay cut to stay in balance with their lives. They are savvy and quick enough to keep up a side hustle when they when they have to.

In other words, Millennials are resourceful and cautious with their money. They also realize that money isn’t everything. If they can enjoy their lives and pay their bills then they’re content.

How Can Millennials Unlock Their True Earning Potential?

Despite this unique mindset, Millennials still work to discover their true earning potential. They want to live their lives without having to stress out over their financial obligations. Millennials have found that it’s much easier than many of us have initially thought.

Understand Your Cost of Living

First things first. Millennials know how to do some legwork. They will consider the cost of living based on factors like location. The Millennial will consider family size, and monthly expenses like rent, health insurance, and student loans. This gives them an idea of how much will be needed to make each months expenses.

Expenses

For example, it’s ridiculously expensive to live in D.C. Millennial developers will have to bill more in a charge per project work environment, than their counterpart living in Alaska.

Regardless of their careers, they’ll be aware of those outside factors. This age group will not forget to scope out job boards or websites. They can always determine at least a ballpark figure on what they will potentially make.

For instance, web designers make over $71,000 in San Francisco, California, USA, but just under $48,000 in Austin, Texas.

Determining How Much They Are Worth

Job titles and experience don’t determine a true earning potential. Variables like unemployment rates, geography, and minimum wage increases impact income. These same variables affect compensation which plays a part in how much you make.

Millennials are experienced in highlighting what makes them unique and worth every dollar. They will demonstrate a unique value proposition.

Demonstrating Individual Worth

“As a freelancer, you’re the mouse. There are 100 other mice out there,” writes William Lipovsky in an excellent Due post. Mr. Lipovsky also discusses the importance of the unique value proposition.

“Getting in the top ten isn’t too difficult if you’re good. Your prices must be competitive, you must prove you can do the work, you must be pleasant to deal with.” writes Lipovsky.

“But being in the top ten doesn’t mean you have a job. There’s often only a job for the best. Why are you the best? What is your unique value add proposition?”

What Make You Unique?

Even if you’re not a freelancer, think about what makes you stand out from all of the other applicants or employees out there? What skills or experiences makes you the best of the best? How can you help solve a specific pain point for a specific group of clients or employers?

Answering those questions honestly can help you determine your unique value add proposition. Most Millennials have been taught how to accentuate their development, growth, and potential.

Looking At Differing Criteria

Jake Jorgovan writes in a CareerFoundry article, that you can make up this figure based on differing criteria. A Millennial will look deeply to see if they enjoy working with the client/company. They will check out how much they expect the company to pay. The Millennial will have a good idea of how much value a company is providing them.

In other words, there’s no right or wrong answer to where you live or how you earn your cash as long as you’re being compensated fairly. Millennials will make sure that they are able to meet their basic needs, and enjoy the work that they’re doing.

How have you unlocked your true earning potential?

 

How Millennials Can Unlock Their True Earning Potential was originally published on Calendar by John Rampton.

The post How Millennials Can Unlock Their True Earning Potential appeared first on KillerStartups.

With an estimated 99.95 percent of small business owners and entrepreneurs opting for debt financing, knowing how to prepare your business for a loan application is a must.

Among the documents that a lender will review, your personal credit as well as your business credit are criteria that play an important role—both can either assist, or in some cases obstruct, your ability to secure financing.

Let’s review some key strategies that everyone needs to know about personal credit score vs business credit score.

Personal Credit Score vs Business Credit Score, What’s the Difference?

These two scores are often independent of each other and they measure different things. Your personal credit score measures your creditworthiness—your personal ability to pay back a debt. On the other hand, a business credit score measures the ability of your business to meet its own financial obligations. Let’s take a look at each one in a bit more detail.

Personal Credit

What It Is

Your personal credit score helps a lender evaluate whether or not to offer you credit, how much to lend you, and what terms (e.g. APR, requirement of collateral) to use. While different personal credit scores have different ranges, one thing never changes: the higher the score, the more financially trustworthy a borrower is considered to be.

Who and What Determines Your Personal Credit Score

Using your Social Security Number (SSN) and your credit history, the three credit reporting bureaus (Equifax, Experian, and Transunion) assign your creditworthiness a score, all using variations of the FICO Score algorithm.

Ranging from 300 to 850, the FICO personal credit score is made of five key components:

  • Payment history (35%): The most important factor in a FICO score is your payment history to lenders. Your ability to pay on time is the first thing that lenders take a look at.
  • Amounts owed (30%): The whole point of seeking a high credit score is to be able to borrow money when you need to. Owing money doesn’t necessarily make you a high-risk borrower but maxing out your credit cards and carrying a high balance on them for several months will negatively affect your FICO score.
  • Length of credit history (15%): It takes time to build a good credit score. In general, the longer a credit history, the higher a FICO credit score.
  • Credit mix (10%): There are different types of debt, including retail cards, credit cards, car loans, and more. Without some form of debt, FICO can’t determine your score. So, you need to responsible use credit cards and installment loans to start (and build up!) your score.
  • New credit (10%): FICO believes that opening several new credit accounts within a short period of time increases your credit risk.

Tips to Boost Your Personal Credit Score

  1. Automate your credit payments. Since paying your lenders on time represents 35% of your FICO score, sign up for automatic payments for all of your credit accounts. Most lenders allow you to set up auto payment using your bank’s routing number and account numbers. Another option is to schedule payments using the bill payment service from your bank or a third-party payment processor, such as Mint.com or MyCheckFree.com.
  2. Adjust your due dates. You don’t have to settle for a due date that is poorly timed with your paycheck. Except for those of mortgages, most due dates can be adjusted with a quick phone call. Depending on your lender, the change may take two to three bill periods to take effect.
  3. Aim for a credit utilization ratio of 30%. Whenever you can, pay off your credit cards in full month after month. If that’s not possible, then aim to have a balance of no more than 30% than your credit limit for each card. A credit utilization ratio of under 30% across all cards is a sign for lenders that you’re managing your credit responsibly.
  4. Handle new credit carefully. Chasing too many of those deep discounts for opening store cards will eventually catch up with you. Every time that you open a new account, your FICO score takes a small hit. So, open a new card only when you really need to.
  5. Don’t close oldest accounts. The number of years that you have held each one of your cards and debts affects your length of credit history. By closing your oldest account, you may dramatically reduce your length of credit history and negatively affect personal credit score.
  6. Order your free credit report every 12 months. FICO and all lenders use your credit history to determine your creditworthiness, so making sure that your credit report is accurate is a must. Every 12 months, request your credit report. Verify that all you personal data, including SSN and mailing address, and listed accounts are correct. To dispute any inconsistencies, follow the instructions on your credit report or file a dispute online with EquifaxExperian, or TransUnion.

Business Credit

What It Is

Also known as a trade or commercial credit score, your business credit score helps financial institutions to determine whether or not you’re a good candidate for debt financing. A high business credit score can improve your chances of obtaining a business loan—and likely, you’ll be able to receive much more favorable terms. Alternatively, a low score can mean higher interest rates, and in some cases, even prevent you from being eligible to borrow.

Additionally, vendors and suppliers often check your business credit score when considering whether to invoice your business on a Net 30 or Net 60 basis.

Who and What Determines Your Business Credit Score

Just like a SSN for individuals, an Employer Identification Number (EIN) allows the IRS and the credit reporting bureaus to track businesses. If your small business is incorporated and has an EIN, registering it with Equifax, Experian, or Dun & Bradstreet is the first step to establish your business credit score.

  • Equifax: Using your business’ payment history, ratio of available credit to utilized credit, age and size, demographics, and public records, Equifax scores your small business credit in a range from 101 to 992 on the Small Business Credit Risk Score for Financial Services and in a range from 101 to 816 on the Small Business Credit Risk Score for Suppliers. Equifax takes the small business owner’s personal credit score into consideration as well.
  • Experian: Ranging from 1 to 100, Experian’s business credit score takes into consideration similar factors as Equifax. Experian gathers data from lenders and vendors that have extended a credit line or loaned money to your business and compares all of that data to peers in your industry.
  • Dun & Bradstreet: Focusing on the one-year payment history of your business, a financial stress score, and other data from at least four vendors, Dunn & Bradstreet’s PAYDEX report uses a 100-point scale to rank your business credit.

Tips to Boost Your Business Score

  1. Establish credit lines with vendors and supplies. It takes data to create business credit scores and Dun & Bradstreet requires at least four vendors to generate its report. Take the time to build up relationships with vendors and suppliers so that they’re willing to sell you on credit on 30- or 60-day basis. No matter how small a vendor is, he or she may become a future trade reference for your business at the time of a loan or business credit score request.
  2. Make timely payments. Return the favor by paying to those vendors and suppliers on time at all times. This will not only help you create a solid payment history but also make those businesses and individuals more likely to report your payment history to the credit reporting bureaus.
  3. Aim to cover all your annual debt obligations with net income. Just because your business can borrow up to $100,000 from a credit line, does not mean you should borrow the full $100,000. A useful rule of thumb is that your net income (revenue after subtracting all costs of doing business) should be at least equal to your annual debt obligations. Showing that your business’ cash inflows is sufficient to meet its obligations has a positive impact on your business credit score.
  4. Request your business credit report today. Having a have a couple of months—instead of a couple weeks—makes improving your business credit a more feasible project. Building business credit takes time, so it’s useful to get a picture of what is your current score and what are areas for improvement. Some credit bureaus, such as Experian, provide you reason codes that help explain your score and provide advice on how to improve it.
  5. Track your business credit every quarter. That’s how little it can take for your score to change and can give you a heads up on a damaging report from a vendor or on the effects of an increase in your utilized credit. Take the lessons from every credit score report to learn how to become the type of borrower that a lender caters to in the future.
  6. Check your report for inaccuracies. If you find an error in your report, report it right away to the relevant bureau using supporting documentation. Pay particular attention to errors in information under public records. Bankruptcies, judgments from debt collection lawsuit, and creditor’s legal rights to seize your property in the past seven years on your report could lead to an automatic denial of your loan application.

Do I Really Need a Business Credit Score?

Yes, because a business credit score helps you in separating your business from your personal finances. During the application process, your underwriter will take a look at additional documentation, such as bank statements or business credit reports. Keeping your finances separate is important for two key reasons.

  • Tax purposes. While you can claim an extensive list of small business tax deductions, you need to provide appropriate supporting documentation. In case of an audit, you need to be able to clearly demonstrate that every single deduction was an actual expense directly related to your business operation. If you’re unable to clearly demonstrate that, you may be subject to penalties, including negligence, late payment, and fraud.
  • Liability for debts: If your business is structured as a corporation or limited liability company, documenting that your finances are separate prevents a creditor from having a stake on your personal assets to satisfy a debt.

How to Do It

  1. Establish a separate legal entity for your business. Choose a business legal structure that works best for your unique situation. If you’re considering to form a corporation, consult with a lawyer and accountant to have a good understanding of applicable rules, including those for tax reporting, compliance, and operation.
  2. Apply for an EIN online for free. You will need this to stay on top of your small business finances, report to the IRS, and establish your business credit score.
  3. Establish a business credit score. Because it’s supporting evidence that demonstrates your business’ payment history. It doesn’t hurt that it will also help you secure the necessary debt financing to fuel the growth of your business.
  4. Open a business checking account and credit card. Using your EIN, establish separate bank accounts and credit cards for your business. The statements from these accounts are appropriate supporting documentation to keep track of business expenses.
  5. Hire a professional bookkeeper or accountant. Commingling your finances can backfire at the time of tax filing or loan application. It’s possible that you misunderstand what would be considered personal debt.  Could be you have business debts you’ve forgotten to include in your financial statements. Hiring the services of a professional bookkeeper or accountant enables you to focus on the core operations of your business. It also helps you better meet compliance requirements. When evaluating bookkeepers and accountants, pay close attention to their schedule of fees and range of services.

Personal Credit Score vs Business Credit Score: Everything You Need to Know (and More) was originally published on Due by Samantha Novick.

The post Personal Credit Score vs Business Credit Score: Everything You Need to Know (and More) appeared first on KillerStartups.