How to Show Proof of Income When You Are Self Employed

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Image: | How to Show Proof of Income When You Are Self Employed | When you work for yourself, you’ll need to adjust and adapt to certain things, such as how to show your proof of income. You might have to do this when applying for a new apartment or taking out a loan. By learning how to show proof of income, you will also do what is best for your company finance as a whole. 

Consider these points to learn the ins and outs of showing proof of income as an entrepreneur. 

How to Show Proof of Income

When you need to show proof of income, you have a lot of options in front of you. Make sure that you consider the following:

  1. Show Your Previous Tax Returns

Tax returns are always a good bet when you are trying to show proof of income. This is the official record and will let the other party know how much you regularly earn. 

Be sure that you keep these records forever both in digital and print form. 

  1. Pull Out the PayPal Receipts and Other Records

Today, services like PayPal are par for the course when it comes to how entrepreneurs send and receive money. If you get paid via PayPal, make sure that you keep track of your payouts. 

You can print out a spreadsheet or PDF or e-mail it to whoever is asking for proof of income. 

  1. Start Creating Check Stubs and Your Own Records

When in doubt, create your own records. 

Start creating check stubs or other records for any payments that you get. This can be done whether you get paid by cash or debit card and will help you keep your records as clean and accurate as possible. 

You can work with a company like that will help you create your own pay stubs and use them properly. By doing this, you’ll have these records on demand whenever you need them. 

  1. Show Your Bank Statement

You can also use bank statements to show proof of income. In most cases, the other party will ask for a bank statement for the last 90 days or so. 

This way, they can see what kind of money you have coming and going from your account with regularity, rather than just posting a large check to make it look like you earn more than you actually do. 

Be sure to use a checking account that is great for business and makes it easy to show these records. This will go a long way when it comes to handling your business finance and recordkeeping in the right way. 

Read Also: Residual income business opportunity

Use the Entrepreneurship Tips That Work

Now that you see how to show proof of income, use these tips so that you can get the most out of your entrepreneurship. This is a matter of detail that you will have to keep learning and using, and it will help you whenever you are trying to move forward with your business. 

Consider these points when you need to show your income. Stay tuned to our content on all things business-related. 

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