Being self employed means having the freedom to run your own business as you see fit. While you may no longer have to work for someone else and can dictate your own paycheck based on how much you want to work, it does come with a few drawbacks. The most noticeable one comes in not being able to easily prove your income should you decide that you need to apply for a credit card or a bank loan. Rather than have to show the lender your entire banking account you would be better off if you had a payslip.
Why do I Need a Payslip?
When you work as an employee for another company you are given a payslip that goes with your paycheck. Using a template your employer documents the hours you work, your gross salary and how much you were paid after all of your deductions were paid. When you are self employed, you are the only one who knows exactly how much you make; this can make it difficult for you to prove your income when you are applying for a loan. If you use a template to create your own payslip complete with all of the appropriate tax deductions you will have real proof of income. 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 someone else. If you do this every week you will always have proof of your income whenever you need it. Even if you do not actually write yourself a paycheck every week you should still make sure that you have some proof of your income available.
How Do I Find a Template?
There are several different places that you can look for a template to create almost any type of payslip including your local office supply store and the library. However, since most self employed people and small businesses rely on a computer to track all of their finances you would be better off to look online for your templates. Through a careful search of the different styles available online you should be able to find exactly what you are looking for. This way you can create an official payslip for yourself or any employees you might have that includes all of the necessary information pertaining to gross pay, taxes and deductions and a final net pay per week or whatever pay period you choose. This simple piece of paper will make it much easier should you decide to apply for a loan and need to show proof of income.