Home Business - Budgeting a Home Business - Continued

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Home Business Finance Categories:

Avoiding a Tax Audit | Getting Paid | Budgeting a Home Business Vacationing Away from a Home Business

Monthly Expenses

Utilities (Telephone, Electric, Gas, etc.)
Mortgage / Rent
Cable
Food
Loans
Transportation
Entertainment
Health Insurance
Life Insurance
Home Owner's Insurance
Advertising / Marketing
Licenses
Office Supplies
Memberships
Taxes
Miscellaneous
TOTAL EXPENSE

You are going to need to guess or estimate for business expenses unless you have a full year of freelancing under your belt. Don't worry if your estimate is off, you can always readjust your budget next month. If you have been in business for more than a year, then use previous year's records to estimate this year's expenses.

In order to figure out taxes, first you need to come up with your target monthly income. Lets assume that your monthly target income is $2,500. The government wants about 45% of this money. But, this will depend on what tax bracket that you fall into and what state that you live in. Your taxes each month would be about $1,125. (When you are self-employed, you will need to pay quarterly taxes on April 15, June 15, Sept 15, and Jan 15.)

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