How do Affiliate Marketers and/or Outsourced Program Managers Manage their money?
Several months ago, I asked Shawn Collins how to handle affiliate checks and taxes. Now my question is more complex, but related. How do 1099 employees, affiliates and outsourced program managers, handle income overall?
I have a good idea of what I'll be doing over the next few months, but I'm looking for suggestions from those that have perfected their finances. Please add your comments below.
Shawn turns over his affiliate checks to an accountant. I looked into that option and chose not to spend $2,000 a year. I don't know what he pays, but the quote I received scared me into trying to figure it out myself. I'll be hiring an accountant, just not on a monthly basis.
On Shawn's post, an accountant, Chad Bordeaux , added his comments: "when setting money aside for your taxes, be sure to set enough aside for your Federal Income Tax (based on your effective tax rate, your “self-employment tax” (15.3%), and any applicable state and local taxes. Depending upon where you live and your income level, this could be anywhere from 20% to 50% of your income when all added up."
Once I hire an accountant and find out exactly what percentages I need to set aside, I'll be paying quarterly taxes diligently. Which leads me to come up with a cash flow strategy. A few weeks ago, my friend Denise O'Berry, sent me a copy of her new book, Small Business Cash Flow, and I've found it to be a great resource. It's the how to book I was seeking. Denise was the first person to introduce me to affiliate marketing five years ago and she gives some very relevant affiliate cash flow business models in her book.
The other thing I've done to work on my finances is to sign up with Quicken Online. They have a 30-day free trial for online services and only $2.99 a month after the trial. I can sign on and bring up my checking, savings and paypal accounts and have bill reminders sent to my gmail and phone. It gives me an instant view of my finances anytime from any computer.
I certainly do not have all the answers, so any help is appreciated. I'm looking forward to a long, healthy, profitable career as an affiliate and an outsourced project manager. Like I said, some of you have the perfect 1099 business model and your comments will help all of us.
I have a good idea of what I'll be doing over the next few months, but I'm looking for suggestions from those that have perfected their finances. Please add your comments below.
Shawn turns over his affiliate checks to an accountant. I looked into that option and chose not to spend $2,000 a year. I don't know what he pays, but the quote I received scared me into trying to figure it out myself. I'll be hiring an accountant, just not on a monthly basis.
On Shawn's post, an accountant, Chad Bordeaux , added his comments: "when setting money aside for your taxes, be sure to set enough aside for your Federal Income Tax (based on your effective tax rate, your “self-employment tax” (15.3%), and any applicable state and local taxes. Depending upon where you live and your income level, this could be anywhere from 20% to 50% of your income when all added up."
Once I hire an accountant and find out exactly what percentages I need to set aside, I'll be paying quarterly taxes diligently. Which leads me to come up with a cash flow strategy. A few weeks ago, my friend Denise O'Berry, sent me a copy of her new book, Small Business Cash Flow, and I've found it to be a great resource. It's the how to book I was seeking. Denise was the first person to introduce me to affiliate marketing five years ago and she gives some very relevant affiliate cash flow business models in her book.
The other thing I've done to work on my finances is to sign up with Quicken Online. They have a 30-day free trial for online services and only $2.99 a month after the trial. I can sign on and bring up my checking, savings and paypal accounts and have bill reminders sent to my gmail and phone. It gives me an instant view of my finances anytime from any computer.
I certainly do not have all the answers, so any help is appreciated. I'm looking forward to a long, healthy, profitable career as an affiliate and an outsourced project manager. Like I said, some of you have the perfect 1099 business model and your comments will help all of us.
Labels: affiliate marketing, quicken, Shawn Collins
