Friday, January 12, 2007

Moonlight at a Part-Time Business Instead of a Part-Time Job

If you need to earn some extra cash and are considering a part-time job, these three reasons may get you thinking about starting your own part-time business instead.

Items for everyday use become business expenses. Instead of earning a paycheck and not having any deductions to claim on your income tax return, you can now claim certain expenses you were not able to before. Your cell phone can now be deducted as a business expense because that is the number you give out to your clients. That calendar you bought to track your business appointments is now a business expense as are any other office supplies you purchase.

The miles you drive are now your own. You can’t take a deduction for the miles you drive to and from your employer, but you can if you track the mileage to and from your client, the bank, the post office or any other trips for your business. Make sure to keep a log book and record your odometer reading at the beginning of the year (or when you start your business) in order to calculate the percentage of your annual mileage used for business use.

You use your talent or skill to further your own personal development. You will have the satisfaction of knowing you’ve used your own gifts to help others with a problem or to enrich their lives. If you’re good with numbers and do the bookkeeping for a business person who hates that task, you’re enabling them to spend their time growing their business. If you teach a musical instrument, you’re passing that skill on to someone else who will also share that gift with the world.

With a lot of hard work and a little luck, hopefully your business will grow so much that you make more money than you do at your day job. This will give you the opportunity to decide if you want to pursue self-employment instead of working for someone else. Good luck!

If you need to earn some extra cash and are considering a part-time job, these three reasons may get you thinking about starting your own part-time business instead.

Items for everyday use become business expenses. Instead of earning a paycheck and not having any deductions to claim on your income tax return, you can now claim certain expenses you were not able to before. Your cell phone can now be deducted as a business expense because that is the number you give out to your clients. That calendar you bought to track your business appointments is now a business expense as are any other office supplies you purchase.

The miles you drive are now your own. You can’t take a deduction for the miles you drive to and from your employer, but you can if you track the mileage to and from your client, the bank, the post office or any other trips for your business. Make sure to keep a log book and record your odometer reading at the beginning of the year (or when you start your business) in order to calculate the percentage of your annual mileage used for business use.

You use your talent or skill to further your own personal development. You will have the satisfaction of knowing you’ve used your own gifts to help others with a problem or to enrich their lives. If you’re good with numbers and do the bookkeeping for a business person who hates that task, you’re enabling them to spend their time growing their business. If you teach a musical instrument, you’re passing that skill on to someone else who will also share that gift with the world.

With a lot of hard work and a little luck, hopefully your business will grow so much that you make more money than you do at your day job. This will give you the opportunity to decide if you want to pursue self-employment instead of working for someone else. Good luck!