Proofing Your Income When You Claim To Be Self-Employed
As a business person, in some of the instances in life, you will need to show someone that you really make some money in your so called business. You may need to prove that you have some earnings in many cases, a loan is one of them. Many people are striving to be self-employed. To keep up with the challenges that are involved in this field, you need strength. Even if you are not making quite good money, doing your own thing or following your passion is worth the hassle. Proofing that you earn some income for a self-employed person consists of several ways. Following are some of the things that show that this company actually have some income of your own.
A pay stub proofs that you pay some employees from your business. It is usually like a payslip, but it is not really a pay slip. It contains that amount your employees earn with the taxes deducted. The pay stub is a very brilliant way to prove that your income is stable. People make themselves pay stubs. If you are asked to show a pay stub, making one for yourself is possible.
Other than pay stubs, profit, and loss statements can also be proof of income. Interesting how your financials go around your business. Keep track of all your finances. Know all your expenditure and how they affect your profits. Define the extent of your spending in the business. Many business people will struggle with their financial management. The easiest way to understand your financial scope is the profit and loss statements. Profit and loss statements can be proof of income to any company or bank.
Bank statements is also more proof of income. income comes hand in hand with bank statements. The newest business may have a problem using this as their proof of income. Years of Income make up the bank statements. You may be asked to produce a bank statement to prove that you have income. Some of the lenders may also need to see bank deposit history. It adds flavor to the fact that the business is performing.
Invoices and contracts also show that the business is running. These documents are worth the proof of income no matter how new your business is. These contracts and invoices show that there is some flow of cash in other ways. Contracts need money to be made; hence in business it means you make contracts because you have income, and you may be borrowing to pay the contracts up.