Very helpful, thanks for sharing! One question for you regarding your bookkeeping and the metrics you use for business planning. Since sole proprietors pay themselves through owner's draws, the "salary" does not show in business expenses--good for tax prep, but bad for calculating the true operating costs. Do you add up these costs outside of your accounting software? Or call them expenses and then clarify it with your accountant at tax time?
Thank you for sharing and I love the role model that you present of saving for retirement. I appreciate you referencing software you use!
Very helpful, thanks for sharing! One question for you regarding your bookkeeping and the metrics you use for business planning. Since sole proprietors pay themselves through owner's draws, the "salary" does not show in business expenses--good for tax prep, but bad for calculating the true operating costs. Do you add up these costs outside of your accounting software? Or call them expenses and then clarify it with your accountant at tax time?
Great article
Great post, Nick. I appreciate the transparency and detail. Starting out on my own freelancing journey, I find this article very timely and helpful!