Side hustling is familiar among youthful Africans. According to “The exchange in Africa”, about 37% of youthful Africans have a side hustle to bring in additional cash. For a few, it’s a method to monetise their interests. For other people, it’s a method to make a decent living.
To guarantee the accomplishment of your side hustle, you need solid money related propensities. Start with an aim. Is this something you expect will one day become your full-time work? Or are you just happy combining it with your current job?
HERE ARE FOUR HINTS TO DEAL WITH YOUR SIDE HUSTLE ACCOUNTS.
SEPARATE BUSINESS AND PERSONAL ACCOUNT.
It’d be wise if you can separate your business and personal account even if you haven’t registered your company.
You can start by having a bank account solely for your side hustle. You can track and monitor salaries, expenses, income. Monthly finances would be done quicker.
GET FAMILIAR WITH TAX
Possibly you haven’t thought of declaring your additional income with the tax collectors, or perhaps you’re attempting to dodge it. IRS is getting stricter and I won’t want you to be on the wrong side of the law.
This is where having a different bank account will prove useful because you’ll have a precise perspective on your salary and costs. By doing this, you’ll have an insight into how much tax you have to pay. You must finish a self-appraisal procedure to pronounce your income as stipulated by tax authorities.
BE GOOD AT RECORD-KEEPING
The way in to an effective business is having a decent handle on your funds. This is significant when you need to deduct real operational expense from your assessable income and prevent your business from running at a loss.
Track all costs, including:
- Raw materials
- Marketing costs
- Software, equipment and other gear
- Utility and telephone bills
- Bank charges
- Travel costs
- Wages paid to other people
Just get yourself a cloud-based accounting software to handle all your side hustle finances. You can monitor your side hustle anywhere, anytime. A reliable accounting software handles the bottlenecks for you.
REFERENCE: Sage, The exchange Africa and Nikki Summers.