Small business money basics: know what the job actually leaves you.

Use a dedicated business account and a consistent way to record what comes in and goes out. Check the bank's requirements for your business type, and keep owner contributions and withdrawals clear. The purpose is to make the story of the money readable.

The IRS requires records that show income and expenses and support entries on your return. Choose a system you can keep current, with the invoices, receipts and other supporting documents it needs. A receipt in the truck door has chosen a poor filing cabinet. (IRS: business records to keep)

Return to the $600 example. Count the visit, the supply run, the quote, the work, the cleanup and any return trip. If the job took eight hours altogether, the $380 remaining before overhead and tax represents $47.50 per hour at that stage of the calculation. It is not the final hourly profit.

Build your own estimate from actual costs and realistic working time. Add a share of ongoing expenses and the profit you need to justify the work. Then compare the offer with what customers value and the alternatives available to them.

If the numbers don't fit, investigate the scope, travel, materials, process or customer group. A lower quote may win a job while making the underlying problem worse. Being booked solid is useful information, but it isn't by itself proof that your prices work.

A customer may pay after you have bought materials and finished the work. Write the expected payment date beside the bills that arrive first. That makes a cash gap visible while you still have time to discuss terms or adjust the schedule.

Once a week, review the bank balance alongside unpaid invoices, upcoming bills and money reserved for tax. Check the next few weeks, not just the week you survived. If the figures are hard to reconcile, bring in a bookkeeper before the pile gets larger.

Federal income tax is generally paid as you earn income. Individuals, including sole proprietors, generally need estimated payments if they expect to owe at least $1,000 after withholding and credits. Withholding, prior-year tax, income patterns and special rules affect the calculation; Form 1040-ES and the IRS guidance explain it. (IRS: estimated taxes)

Use the current payment dates and check state obligations separately. Decide on a tax reserve using an estimate of your actual situation, not a percentage someone uses in a different business. Ask a tax professional for help when you need it. (IRS: estimated taxes)

For payment apps and online marketplaces covered by the third-party settlement rules, the current federal Form 1099-K reporting threshold is more than $20,000 and more than 200 transactions. A form may still arrive below that threshold. Direct payment-card processing has different reporting rules, and income must be reported whether a form arrives or not. (IRS: understanding Form 1099-K)

For 2026 payments, the general Form 1099-NEC threshold for business payments for nonemployee services is $2,000. Exceptions matter, including certain payments handled through card or third-party networks. Collect appropriate contractor information early and use the IRS instructions or your accountant to decide which payments you must report. (IRS: Form 1099-NEC and independent contractors; IRS: instructions for Forms 1099-MISC and 1099-NEC)

Your project record explains the work promised and completed. Your accounting system explains the invoice, payment and financial records. Make it easy to connect the two, especially when the customer asks what an amount covers.

BizzyBot can keep customer and project details together and connects with QuickBooks Online. Use the integration guide to check what that connection covers; keep bookkeeping and tax work in the appropriate accounting process.