How to Demonstrate Proof of Income When You Work for Yourself

Did you know that there are about 15 million Americans who are self-employed on a full-time basis?

If you are among these people, you probably have a small business or you’re a freelancer with a couple of gig jobs. Either way, working for yourself has its joys. You are your own boss, so you’ve got greater control of your work-life balance.

But there are also downsides. For instance, you might find it difficult to access housing or credit facilities because you have no reliable proof of income.

Well, getting proof of income might have been a challenge in the past, but it no longer is. Continue reading to learn how to get proof of income when you work for yourself.

Create Your Own Pay Stubs

When you have a traditional job, your employer likely provides you with pay stubs showing your wages for a specific period of time. Even if the employer doesn’t give this document to employees, you can readily get one from the human resources or accounts department.

On the other hand, when you work for yourself, you have no employer. As such, there’s no one who is under obligation to keep a record of your wages.

The good news is there are tools that enable you to create a pay stub when you work for yourself. All you need to do is find an easy-to-use tool, key in accurate information, and print out the pay stub.

Now, you’re probably thinking, “Can’t fraudulent people use the same tools to create falsified pay stubs?”

That’s correct, which is why, depending on where you need to prove your income, you might need to certify the pay stubs. An attorney or CPA can verify the information and certify the stubs.

Bank Statement

If you’re a business owner, you certainly have business and personal bank accounts. You can use your bank statements to show proof of income.

The type of statement you’ll need will depend on the purpose.

If you’re looking to secure a business loan, for example, the lender will typically require you to provide your business’ bank statements. In addition to this, you can provide other business-related financial documents, such as profit and loss statement.

And if you’re applying for a personal loan, then personal bank account statement will suffice.

Like self-generated paystubs, you might need to present certified bank statements. A bank official can certify your statements upon request.

Tax Returns

Every year when tax season rolls around, you provide the government with information about your income, expenses, pension, distribution, and benefits for the past year.

As such, your tax returns are a reliable indicator of your finances and can serve as a solid proof of income, especially when you’re self-employed.

Getting Proof of Income Is an Easy Task

Prior to reading this, you probably thought getting proof of income when you work for yourself was a tall ask. Lucky for you, this is no longer the case. We’ve fleshed out the various ways you can show proof your income.

Need more tips on entrepreneurship and self-employment? Stay tuned to our site!

James Daniels is a freelance writer, business enthusiast, a bit of a tech buff, and an overall geek. He is also an avid reader, who can while away hours reading and knowing about the latest gadgets and tech, whilst offering views and opinions on these topics.

How to Demonstrate Proof of Income When You Work for Yourself

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