Do I Need a Business Checking Account for My Pampered Chef Business?

[Laura1293]

Do you have a business checking account for your Pampered Chef business?? My director who has been doing PC for at least 5 years doesn't. She said that it just goes in and out. Wouldn't it be better for IRS purposes to have another account??? As of this moment I really don't have the extra $100 to open the account. I would like to keep a little extra in there, just in case someone bounces something. Thanks Laura

 

[swhitton]

I have a separate account for my business. I did not specify with the bank that it would be a business account as often they have extra fees, etc. It is just a regular, no fee account. I find it is much easier to keep money straight as PC does not take out money from account for at least 7 days from when you submit and I don't want the money mixed with the household money for that long (my husband might think it can be spent). It also makes it much easier at the end of the year for taxes to have it separate. I would encourage everyone to have a separate account if you can.

Sharon

 

[Jacey]

I'm opening oneI originally planned on using my main checking account, but from the supply and sample order I already placed I've seen it take's PC a bit to take the money out.

While I see the benefit in that (it will give plenty of time for guest's checks to go through) it doesn't work well for me mixed in with all my normal home expenses.

So I've decided to open up another account, and in fact, called my bank yesterday. They have a free, no interest, no minimum balance checking account that I can set up, so will be doing that Monday.

Anyone know how I go about changing the PC Debit card information to access the new account once I get it set up? And how long it should take?

Thanks!

Tracy

 

[ShanaSmith]

I have a separate account for my PC business, I also leave about 20% of my income in this account for taxes at the end of the year. That way I always have a little buffer in the account should I need it. I really recomend this for my consultants, so you always know where you stand. I have one gal that is in big trouble right now because she got her PC money and personal money too mixed up.

 

[ladybug]

Separate accountI also have a separate PC account (I was encouraged to do so by my Dir.) and it is easier to track, etc. and for tax purposes, I like having the separate bank statements. I buy everything PC through that account and have the check sent there too. Like stated before, I don't tell the bank its for business, its just another personal account in my name (although my teller does know its for PC~she's great and it helps when outside order checks sometimes come written out to PC instead of the host's name)

Since you don't have the extra money, why don't you try one of the banks offering free checking, with no minimum?? I like to keep a buffer too, but one time I only had 88 cents in my PC account!!! ~ with no bank fees

 

[BethCooks4U]

Anyone know how I go about changing the PC Debit card information to access the new account once I get it set up? And how long it should take?

Thanks!

Tracy

Just go to the web site and send an email to finance. They will make the necessary changes and I think it only takes a day or so.

 

[Happy Mom]

I just started. I opened a free checking account just for PC. This keeps my potential income separate from my home expenses. When I get the PC debit card, I will have my orders debited from this account. This is easier come tax time.

I also recommend direct deposit of your PC commission checks to your checking account used only for your business.

Another good idea is to purchase these two record books: Expense Record
and Vehicle Mileage. They are under $1.00 and the size of a checkbook. I got mine at Staples.

I keep the mileage booklet in my glove box in the car. Every time I make a cold call or run an errand for my business (banking, buying supplies,
meetings), I note the date, miles, destination. It has a place for the odometer reading, but that means I would have to reset it each time. If I don't know the miles, I go to Mapquest-directions. I put in my street address, the place I visited, and record the miles listed.

For the expenses, I have a large manilla envelope; each time I purchase something for the business, I put the receipt in the envelope and record it in the Expense booklet. Don't forget to record items that you buy like your starter kit, upgrades, and PC paperwork.

Since I do not have room for a separate office, I purchased large, plastic bins for my paperwork, folders, and orders. This way I have a portable office.

I hope this helps you get started.

 

[ladybug]

I Do the Same!That's funny... I do the same thing with Mapquest... I thought I came up with such an original idea!! HA!

 

[Happy Mom]

Good minds just think alike.

 

[adampchef]

My recruiter also said a business Checking account wasa good idea, I like it because it keeps everything seperate frommy personal finances.

 

[chefann]

I keep the mileage booklet in my glove box in the car. Every time I make a cold call or run an errand for my business (banking, buying supplies,
meetings), I note the date, miles, destination. It has a place for the odometer reading, but that means I would have to reset it each time. If I don't know the miles, I go to Mapquest-directions. I put in my street address, the place I visited, and record the miles listed.

That's your trip odometer. You should actually record the "master" odometer reading for each trip. Jot it down at the beginning and end of the trip, and the difference between the 2 readings is the distance in miles (or km) that you traveled.

 

[PamperChefCarol]

Get a separate bank/checking account right at the beginning. It has made it so easy to keep track of what is PC and what isn't. My director was very helpful about what we could use as business expenses and what we couldn't so everything that I can comes out of that account. Here in Michigan, TCF offers free small business checking and that's what I use.

And, yes to Ann, about the mileage. That's how our accountant and my director both said to record the mileage. The actual odometer reading starting and ending, and a quick note as to it's reason. Nothing big, just booking lead, recruit lead, etc.

Gotta run.. my sample box FINALLY arrived!!

 

[heat123]

I have a seperate acct for PC and think it's so much easier to keep track of! I couldn't imagine have it combined with your personal acct! EEK!

 

[Carissidy]

Do you have a business checking account for your Pampered Chef business?? My director who has been doing PC for at least 5 years doesn't. She said that it just goes in and out. Wouldn't it be better for IRS purposes to have another account??? As of this moment I really don't have the extra $100 to open the account. I would like to keep a little extra in there, just in case someone bounces something. Thanks Laura

I have a separate account for Pampered Chef it is so much easier to keep track of. I wouldnt do it any other way myself!

 

[traci4tpc]

Laura - just open up a separate checking account not a "business account" becasue they cost more and you usually have to keep an amount in them without getting a service charge.

Just have two regular checking accounts, one for personal use & the other for PC. That way everything is separate for tax purposes.

 

[kaceyleigh2]

I've been using my savings account as my PC account since I started my business. My bank suddenly started charging me "excessive transaction fees" on my savings account (on top of many other ridiculous fees!). I switched to the credit union across the street and they had never heard of such a thing! I asked if she thought I should have a checking acct for PC or just use my savings and she said if you arent going to be writing checks you should just do your savings...
Anyways, moral of the story ask your bank or go to the credit union across the street LOL!

 

[chefann]

Oh, you definitely have to read the fine print. The bank where I had my account in college would charge you per check if you wrote more than 6 in a month. ATM withdrawls counted as a check.

If you can find a bank that has free checking/savings accounts, you can usually use those for PC. Even if they require direct deposit in order to be free, since you can have your commission direct-deposited.

 

[Cassie1037]

Mileage???I also have a personal checking account (no fees, no min balance) for PChef, it is way easier on me. I do keep all receipts for expenses too. However, I do not do mileage, what is the benefit? What am I missing out on in the end?

 

[chefann]

Mileage is another deduction. The rate varies. I think it's around 48 cents per mile (the IRS site has it - check it at tax time). Those miles add up to a fairly sizeable deduction, just like stamps, office supplies, samples, etc.

 

[Cassie1037]

This is my first home-based business... how do the taxes weigh out in the end? Do you owe, or do you get a refund?

Thanks

 

[chefann]

Depends on how much you spend vs. how much you make.

 

[Cassie1037]

I know that much... I guess I am a little worried about year-end coming up.

 

[chefann]

Well, without knowing your commission average, how much you spend on supplies, etc., I really can't say.
I'm a hobbyist, and I usually end up getting money back, because I spend too much.

 

[Cassie1037]

I'm hoping that will be my case too.

 

[PC_CPR]

That depends on how much you make in PC and what your tax bracket is (especially if combined with hubby's income). I would venture to say that if PC is your PT job, that your expenses will offset your profits resulting in little or no tax due. But I'm not an accountant nor do I play one on TV!

 

[kmschroll2001]

I originally planned on using my main checking account, but from the supply and sample order I already placed I've seen it take's PC a bit to take the money out.

While I see the benefit in that (it will give plenty of time for guest's checks to go through) it doesn't work well for me mixed in with all my normal home expenses.

So I've decided to open up another account, and in fact, called my bank yesterday. They have a free, no interest, no minimum balance checking account that I can set up, so will be doing that Monday.

Anyone know how I go about changing the PC Debit card information to access the new account once I get it set up? And how long it should take?

Thanks!

Tracy

When I opened my new account, I faxed a change of account request to HO (you can get the number off of CC) They called me a few hours later to see if I had any parties pending and changed the account as of the next morning.

 

[28sal]

Do you have a business checking account for your Pampered Chef business?? My director who has been doing PC for at least 5 years doesn't. She said that it just goes in and out. Wouldn't it be better for IRS purposes to have another account??? As of this moment I really don't have the extra $100 to open the account. I would like to keep a little extra in there, just in case someone bounces something. Thanks Laura

i have 3 bank accounts with bank of america one is for all my personal bills one is my miscellaneous items grocery, pet food bathroom itemsetc.... and the third is strictly pampered chef where i deposit all my cash, checks from shows. it helps me to keep things seperate and they deposit my commision checks into that account then i transfer what i want into my misc... account. thats just me though, everybody is different.