Why every Mary Kay Sales Director needs 3 checking accounts

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How many checking accounts do you have? If you didn’t say at least 3, then I invite you to read this article to find out why you need them, what they are for, and how they can make running your MK business a lot easier (and less stressful!). You probably have the first two, but what about the third one?

 

The first type of checking account is your personal checking account  (you probably have this one already).

 

This is the account you have to spend your personal money in, shopping, eating out and paying your personal bills. You should not get this mixed up with your second account…. which is: 

 

Your business account

 

When you are a Mary Kay Consultant, Sales Director or National Sales Director you are the employer and the employee.  You have to pay yourself by writing a check to your personal account. You will leave a set amount (a percentage) of the profits to invest back into your business. The amount is up to you, but the normal splits are 60-40 (60 back into the business, 40 in your pocket) or 50-50. You may be investing a higher percentage back into your business if you are just getting started; this investment is being used to increase your inventory or purchasing other business related expenses like section 2 sales aid, training for your meetings or travel to company events.

 

 

 

The third account is the one that is often overlooked. It is the Other peoples money account.

 

            The sole purpose of this account is to keep other peoples money out of your business account. It is very common for sales directors to collect money from their unit members to pay for expenses that the director pre-paid for or reserved on their credit card, such as plain flights to seminar or hotel room you have reserved to keep you unit in all one place.

 

 You do not want to have it in your business account, this can be complicated to track and it can look like income to the IRS. This is considered as co-mingling of your accounts, and that is never a good idea.  Save yourself the nightmare of the paper trail at tax time.

 

So keep your accounts separate, you will be glad you did.

 

And if you are looking for more expense tracking tools to run your business, or any of the other tools that will make your life selling MK easier, then you can learn more about QT Office. QT is an expense tracking, point of sales management, invoice creating “everything” tool that has been designed for Mary Kay consultants, Directors and Nationals. Find out what you have been missing =)