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How to Show Proof of Income for the Self Employed

People who are self employed and have a business of their own has no one to answer to but himself. You don’t have any boss and you can dictate your own salary according to how much you want to work. While there is much freedom as a self employed, it also has its own drawbacks. One of the most noticeable drawback is not being able to easily prove your income if you want to apply for a credit card or a bank loan. So it is best if you have a payslip instead of showing the lender your entire bank account.

Regular employee paychecks come with a detailed pay slip which shows how much they earned, how much deductions are to be taken and the final amount which they take home. A template is used by employers to document that number of hours you have worked, your gross income and you net income after deductions are paid. Self employed people have only themselves who know how much they earn and so if they are applying for a loan, it can be difficult to prove your income. But, if you use a template to create your own payslip complete with all of the appropriate tax deductions, you will have real proof of income. It is possible to create a pay stub similar to what employees receive which has complete company name and address on it. You will have proof of your income whenever you need it if you do this every week. You don’t really have to also write a paycheck for yourself, but just make sure that you have proof of income available.

The office supply store and the library are some of the places where you can get a pay slip. Another way of searching for pay slip templates is from online sources since being a business person would make you use your computer to track your finances. An online search would reveal many different types of templates that you choose from for your needs. You can then create a pay slip of your own which will show your gross income, taxes, deductions and your net pay, and you can create the same with your employees also. These pay slips can prove your income the next time you decide for a loan.

So if you are self-employed, the drawback of not being able to prove your income is already resolved by creating your own pay slip through templates that are available online.

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