Self employed individuals who run their own business can do whatever they want. You don’t have any boss and you can dictate your own salary according to how much you want to work. While there is much freedom as a self employed, it also has its own drawbacks. One drawback is not being able to prove your income if you need to apply for a loan or a credit card. You can either should your entire bank account to prove your income, or create a pay slip for yourself.
Regular employee paychecks come with a detailed pay slip which shows how much they earned, how much deductions are to be taken and the final amount which they take home. Your employer uses a template to document how many hours you have worked, your gross salary, and how much you were paid after all your deductions were paid. For self employed people, there is nobody else who know how much income you earned except yourself and this makes it difficult t prove to the bank your income when applying for a loan. If you want real proof of income, then you can use a template similar to what employers use to indicate the income of an employee. You can create a complete pay stub with your company name and address on it just like the one you would receive if you were working for an employer. If you give yourself a pay slip every week, then you will have a proof of income whenever you need it. Proof of income available is important even if you don’t really write out a paycheck for yourself.
The office supply store and the library are some of the places where you can get a pay slip. Today , most self employed people and small businesses rely on their computers to track their finances, so your should also look for a template online. You can search online for different types of pay slips available, then choose the one that has all the features that you need. You can then create a pay slip of your own which will show your gross income, taxes, deductions and your net pay, and you can create the same with your employees also. These pay slips can prove your income the next time you decide for a loan.
So if you are self-employed, the drawback of not being able to prove your income is already resolved by creating your own pay slip through templates that are available online.