How Can Self-employed Individuals Show Proof of Income?

by Josh Biggs in Business on 15th September 2021

In the world of self-employment, it can be difficult to show proof of income. Many people have been told that they need to provide a pay stub from an employer to get a loan or insurance, but if you’re self-employed, then this isn’t possible. 

The good news is that there are some other ways that you can show proof of your income and still qualify for what you need.

  1. Use a Paystub Generator

Since you’re your own boss, it makes sense that you should be able to generate your pay stubs. By using ThePayStubs generator, you can create your paystub within minutes online. 

It doesn’t take much time at all, but once it’s done, then you’ll have something physical to show whenever someone asks about your income.

This is especially helpful when you need to show proof of your income to get a loan or other financial reasons. It’s also great if you’re applying for work and the prospective employer asks that all applicants submit paystubs from their current job.

  1. Keep Your Invoices Organized

Invoices are a great way for you to keep track of your income and expenses. You can use them as proof whenever someone asks and having everything neatly organized helps with taxes at the end of the year.

This is also helpful if you’re applying for work because it’s easy to see how much money you’ve made recently – plus, it’s great if you want to show your most recent customer invoices.

The best thing about having everything organized is that it makes tax time a breeze and this way, you can spend more of the year earning money instead of filing paperwork at home after work hours. Plus, keeping track of expenses helps with taxes in general so that you only pay what you owe.

  1. File Your Taxes Properly

The most important thing is to keep good records of everything so that when tax time does roll around, it’s easy for you to file your taxes and not pay someone else to do them for you. 

Plus, this way, if there are any errors, then the IRS will be able to see what happened and whether it was your fault or the provider’s.

Having good records is also great for showing proof of income, especially if you’re applying for a loan and need documentation as part of the process. 

If someone asks about your tax return, then give them copies instead of putting yourself at risk by potentially sharing an error with them that can cause you problems later on.

  1. Bank Statements

Many people also recommend keeping bank statements on hand to show proof of your income. This helps with obtaining loans and insurance, especially if you have an account that doesn’t issue checks or direct deposit slips for whatever reason.

This is great because it’s simple enough – all you need are copies of the most recent bank statement so that whoever needs to see them can see for themselves how much you make. 

This is especially helpful in the case of loans because it shows a source of income, even if they aren’t checks or direct deposits.

  1. Accounting Software

Taxes, bank statements, and invoices are a great way to show proof of your income on an ongoing basis. However, some people prefer using accounting software instead. 

This is helpful because you can set up all the categories you need – including income from various sources and expenses related to business activities or whatever else it happens to be.

This helps keep track of everything so that you can easily file your taxes at the end of each year without worrying about forgetting anything or whether there are any errors in the paperwork. 

It’s also great because accounting software can automatically generate reports if someone asks, making it easier to show proof of income whenever necessary.

These are some easy ways to show proof of your self-employed income so that you can get what you need when applying for loans and insurance. The most important thing is to keep good records, but having something physical that you can show whenever necessary makes things easier when it comes time for taxes.

Categories: Business