Self Employed-How to Manage Money

**misstina87** · 08-11-2010, 10:57 PM

So I'm venturing into starting my own ebay business and I have some questions about how to manage my money. I currently have 3 bank accounts-checking, savings, and business. My checking I use for budgeted items only (although I have a few hundred dollars extra in there as a buffer). Savings is where I keep any extra money I have. Business is to be used for business expenses. I'm going to frequently need to buy inventory so I wanted to have a certain amount of money in my business account to cover those costs and I'll have a separate debit card to go with it.

Now, my question is... Should I charge all other business costs (like shipping, packing materials, etc.) to my business account AND should I also transfer the amount I am paid (I'm using paypal) to my business account? I was thinking I would do that and then the last day of the month, I would calculate how much money I made. I then would transfer my budgeted bills amount to checking and then whatever is leftover goes to savings.

Is there an easier way? Is anyone else here self employed that can help me? Even better, does anyone here sell full time on ebay?

**tervsforme** · 08-12-2010, 01:10 PM

Yes, you want to keep your business expenses separate from your personal expenses. Buying inventory and shipping supplies, etc. should come out of your business account. The income would work the same way. If you get paid using paypal, you should transfer it to your business account. You can take what you need out of the business account and then use the rest to run the business.

**Momto5RN** · 08-12-2010, 01:39 PM

i use to have an ebay business - i had a seperate cking acct in just my name for anything that had to do with it - used that debit card to buy supplies etc.

you need to keep really good records too as far as milage to and from PO if you shop for resale for those miles etc also - if you do that properly you can deduct a % of any vehilce repairs as business also .

my one big tip as i saw the repercussions of people doing this- NEVER use income that is supposed to pay for bills to pick up even what seems to be the best deal -
# 1 you have no gaurentee it will sell in time to pay that bill

#2 there could be 500 other people that saw and got that same deal with the same idea in mind .

i started out in 01 selling some of my youngests baby stuff and a palm 5 i won which i used the money from that to buy a jogging stroller - i thought hmm that was neat .

i eventually became a powerseller selling mainly new kids clothes i would get at 80-90% off of clearance racks at strawbridges macys etc hold a few months until the correct selling season and resell at 50% or so of the marked price.

i slowed down when dx with fibro and alot of the changes with feedback and fees wore me down and then i was able to go back to work as a RN which is my love as well as my occupation.

i dont know if you have read the message boards or joined any yahoo groups about ebay ( non advertising type more ones that are informational etc) but they are a weath of information and tips.

at my best i could make 1000 a month clear after fees- and buying things to resell

oh and i only reinvested ebay made money into ebay .

**PinkTulip** · 08-14-2010, 11:22 AM

I don't know if I am much help because I consultant, so the only expenses I ever have are personal (house, electric, gas, etc). I do have traveling expenses though.

I keep a seperate account for all my deposits. Also keep ALL bills and receipts. Do books monthly!!