
New Small Home Based Business
I'm am in the process (and have been) of creating a small home-based business. I can't afford new business accounting software so I am hoping YNAB will work. I'm not sure how to go about setting it up though. Any thoughts? My business - at this time - is a service business (coaching). No inventory will be involved. I'm just not sure how to deal with this in YNAB.
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Hi there! You can definitely use YNAB for your small business -- we run YNAB the company on YNAB the software.
If you have separate accounts for your business, then set those up in another budget file. Customize the categories for your business expenses (rent, insurance, continuing education.. whatever you know you'll need to spend).
When you pay yourself, you'll then enter an outflow transaction from the business account, with the category "Paycheck" (or something like that), and enter an inflow in your personal budget file.
Our founder, Jesse, has written a number of blog posts that would be helpful. Here are some great ones:
- Goodbye Quickbooks: You Need a Separate Business Budget
- Moving YNAB to YNAB
- YNAB’s Business Category Setup in YNAB Revealed.
- Goodbye Quickbooks: Use YNAB to Track Accounts Receivable
- Success Story: How YNAB Helped Me Launch A Profitable Business
Keep in mind that they were created based off of our previous version of YNAB (YNAB 4) so you won't recognize some of the screenshots. The information is all still relevant, though!
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Jen's given some great advice! I've run my business for almost a year solely on YNAB. If you find that you need invoicing options or payment processing options, check out Waveapps. It's free and minimal cost to processing payments (better than PayPal). As a bookkeeper, I think it's robust enough for someone to get started with, but it doesn't measure up to the likes of Quickbooks Online or Xero when your business grows to that point! No matter what software you end up using, YNAB will always have a place in your business 'cause YBNABT (Your Business Needs A Budget Too!) :-)
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I actually use a second budget in YNAB to budget for my business. It isn't really an at home business but it is based from home (mobile pet grooming). I had to get creative with my categories and I still edit them because my business is now expanding to the point that I will be hiring my first employee soon. It is definitely doable and just as handy for business budgeting and YNAB.
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I, too, am getting ready to start my own business. My concern is that I've already spent money from my personal budget for the schooling, and will need to pay for a couple of association fees and my license fee out of my personal budget (obviously I have no income yet). My question is, how do I transfer or show that in my business budget? Do I just set those payments up in my business budget and show the deficit?
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I'd like to start a small contracting business where I live because as a Technical Writer there is a lot of work available in Hawaii because not a lot of people know about or have degrees in Technical Communication.
My plan is to use YNAB to collect all my receipts so at the beginning I know how much of my personal money is going into my small business. I don't want to go into debt to make this business idea a reality but I also have no one to talk to about creating a contracting company so small that it only includes me!
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SO, I haven't actually made any money yet, but I have had business expenses. I've set up a separate business budget, but I'm a little confused. For now, I've set up a master category called "Business" in my regular budget. When I start making money, do I need to put what I've already done in there as well? I have a client, but it could be a few months before I see any money.