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How Freelancers should record income with Paystub Creator?

Paystub creator is one of the best tools to use for recording income, whether you’re a freelancer, part-time or full-time employee. As a freelancer, it is a great struggle when you have to produce the evidence of income for availing credit facilities or filing taxes.

Let’s see the possibilities available to freelancers for recording income proof when you’re self-employed.

5 Ways to show your Proof of Income as a Freelancer

1. Show P&L Statements

One of the biggest mistakes made by freelancers is not creating P&L Statements. As a freelancer, you’re self-employed. You should think yourself as a business and prepare profit and loss statements wisely. It helps you stay organized and you can track personal profitability and show income proof at the same time.

 

2. Latest Tax Returns

Most recent tax return statements are required by banks if you want to avail loans. Yet another mistake made by freelancers is showing less income to pay less taxes. This results in making them ineligible to avail loans as tax returns show that they don’t earn enough to pay installments.

 

3. Use Check Stub Generator

When you’re self-employed, you’re not provided with any W-2 statements or paystubs by your employer but you’re your own boss. It’s alright if you don’t create W-2s as the information goes on Schedule C of your tax returns. The only requirement is to show your proof of income and what else can justify this better than pay stubs. You may use our Free Check Stub Generator.

 

4. Invoices & Contracts should be handy

Keep the essential details of your clients ready on hand so that you can show the invoices and contracts at any given point of time. The contracts define that you have certain fixed income for the coming months. Thus, they may consider you for loans or credit facilities.

You may try free check stub template to personalize paychecks

 

5. Bank Statements

Some freelancers have bank accounts separately managed for business and personal use. So, in case if someone asks for income proof, you can simply show bank statement that clearly shows the inflow of cash. It gives an idea of your monthly earnings. The respective individuals or finance company can observe monthly cash inflow to determine your eligibility for loan payments.

If you find this as a right time to use our Free check stub maker then do it now!

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