Using a Home Office
At some time or another, you've probably imagined what it would be like to work from home. The gurgle of the coffee machine wakes you. You take the time to linger over a couple of cups while reading the newspaper in your housecoat. You check your day's agenda and make a few phone calls. With no one to interrupt you, you manage to get most of your work done by early afternoon. Maybe you take a shower, throw in a load of laundry, and head to the bank during the mid-afternoon lull.
No commute. No rush. No distractions. No boss. What could be better?
While working from home definitely has its advantages, there are disadvantages too. Will you be able to perform all the day-to-day tasks necessary for running your business from home? Do you have the space available to conduct business meetings if necessary? Are you sure you won't be more distracted by small chores at home than you would be by co-workers in an office?
These are questions that only you can answer. But if you do decide that working from home is right for you and your business, then you can look at the other benefits of having a home office.
Home Office Benefits:
The main benefit is tax write-offs. You will be able to write-off a portion of your rent or mortgage payment based on what percentage of space is dedicated for office use. You'll also be able to write off that same percentage of your utility payments such as phone, electric, heating, water and internet service.
Depending on the specific nature of your business, there may be many other things you can write off as well. A designer, writer or photographer may be able to write off magazine subscriptions. An interior designer who showcases their own home may even be able to write off a portion of home renovations.
In any case, you should strongly consider hiring an accountant to help you. The amount of money you personally save through effective accounting can make a big difference in your income, especially during the early years of a new business.