Word bank: business · dollar · Profit · receipts · self-employment

1. Track every with a simple ledger.
2. Keep .
3. Separate and personal money.
4. ≠ cash.
5. $400+ in net earnings generally means filing a tax return.

1. 1. Why keep business money separate from personal money?

   • A. It makes it clear what the business actually earns and spends.
   • B. It's required to use a debit card.
   • C. It doubles your profit.
   • D. It avoids all taxes.

2. A student earns $1,200 in net profit from a summer business.

   2. Under IRS rules, what's generally true?

   • A. Students never owe taxes.
   • B. Net self-employment earnings of $400 or more generally mean filing a return and paying self-employment tax.
   • C. Only businesses over $10,000 file taxes.
   • D. Cash payments don't count as income.

3. 3. If your ledger shows a profit, your bank balance must have grown by that same amount.

   True/False

1. 1. Revenue is $520 and expenses are $190. What's the profit?

2. 2. Give two reasons to keep receipts.

1. 1. What would you use to track a small business's money: an app, a spreadsheet, or paper? Why?

2. 2. Why do so many small businesses get surprised by taxes?