Financial Tips for Working from Home | Baton Rouge, LA CPA
If you are transitioning from an office to a home office, you are still getting used to a familiar yet entirely new environment. Any WFH scenario requires a new level of scrutiny into your habits and finances.
Keep track of your business expenses. If you work for a company, find out what expenses are covered versus what you need to supply on your own. Even more important, you must learn what you can and cannot write off your taxes. This is where a hiring small business accounting firm can be a valuable resource.
Manage your time wisely. Time is money. If you work for a company from home, you only help your employer and your future by staying as productive as possible. Explore productivity apps to measure how long you stay engaged on specific tasks. Other apps limit your social media time so you won’t be tempted to check Instagram while on the clock. It takes discipline, a beneficial quality that flows over into your home life, as well.
Automate your finances. You most likely receive your salary via automatic deposit, but there are many other aspects of your financial life that you can automate. If your employer has a retirement plan, enroll; your contribution is taken out automatically. Explore the various investment apps or ask an accountant for impartial advice. Set up an automatic transfer from checking to savings accounts to build up your savings painlessly.
Continue your education. Working from home allows you time to get chores done on breaks and lunch hours. Vacuuming, laundry, and meal preparation are much easier when they are just a few steps away. However, working from home is also a great opportunity to use your breaks to learn new skills. There are many free and low-cost online classes and other resources to teach you what you need to know to get ahead: how to master a certain type of software, brush up on management skills, and hone your financial skills.
Consider adding to your insurance. You are protected at the office, but what about your office at home? For some WFH workers, taking work home with you may bring with it some additional liability. Talk with an accountant or insurance agent about whether you need additional insurance such as an umbrella plan. This additional coverage protects you in case someone is injured on your property or damages your property, and it can cover some legal fees in case you get sued.
Working from home can be a challenge for some, and a satisfying journey for others. It is an opportunity to experience a different side of work-life balance and gives you an opportunity to reassess your work habits, financial health, and future. For other tax questions and financial tips for working at home, contact our Baton Rouge accounting office today.