Making a Proof of Income for the Self-Employed
The number of Americans who engage in self-employment forms about a third of the entire workforce. There is the need to know that one requires a form of documentation to proof that they have an income in this category. It therefore means that one needs to go outside of the regular when you need to prove that you have your own income. By proof of incomes it shows that you have a supporting document that can proof that you can take good care of the things that you need for a good living. There is a need to ensure that you can proof that you can take care of your rent or mortgage, insurance, tax audits and loans.
It is vital to know that as an employee all that you need is a letter from your employer or the pay stubs that you get. Things, however, can be challenging especially for the self-employed because they need their proofs. There are many different documents that can help act like the proof of income. You need to ensure that you keep good records of your business dealings to make sure that you do not struggle getting information. There are several documents as discussed below that can be used to come up with a proof of income.
First, there is the need to ensure that you keep the business’s profit and loss statement. When you have a profit and loss statement; it is essential to know that you can prove that you make a living. You need to know that with this document, it will easy to show your earning and payments during that specified period. The document contains crucial info such as the name of your business, a period of investigation and total profits or losses.
You also need to ensure that you have bank statements. You need to understand that your business may require an extra document the profit and loss statement and bank statements are for that. There is the need to know that you need bank statements especially when you keep your business accounts separate from your personal accounts. It is important to know that it gets easy to prove that your business is making profits when you show the bank statements.
Another document that will help to certify that you have an income is the tax documents. With the wage and tax statements you get, you can show that you have an income. In that case, it is crucial to ensure that you keep your 1099 forms.
All these documents can help come up with a proof of income. A pay stub, however, will save you all these effort to keep the documents and all you need is a pay stub generator