And for a bit, I was terrified that our CPA might not survive his own cancer. I know, I know. I was selfish as fuck, but he knows our stuff inside and out. Ironically, he's one of the few people in my life who's super excited about my writing career.
For those of you who are attempting a career in writng, here's some tips (and NONE of this is financial or legal advice!):
1) Keep all your receipts. If you don't want to deal with a whole bunch of paper, scan them as PDFs in case the IRS has questions.
2) What expenses apply to your business? Cover artist fees, software, formatting fees, editing fees, basically anything that goes toward your writing career.
3) Pay attention to IRS rules. I do everything in a cash accrual basis. What this means is pay for your expenses ahead of time. For example, I'm attending a class Kris Rusch is teaching next January. I've already paid for the class itself, which means I can take the deduction for 2024 instead of 2025. By the same token, most retailers pay me on a 60-day delay, so any money I made in November or December of 2023 isn't paid until 2024. Therefore, I don't owe taxes on it until 2024.
4) Find accounting software, learn how to use it, and keep your entries up-to-date. No one likes this crappy part of owning your own business. I generally do all my data entry every two weeks to keep up. For software, I prefer Quicken, but use whatever you feel comfortable with. GK prefers Excel spreadsheets.
5) Find a certified professional accountant! You may think it's too expensive, but a good CPA is worth their weight in gold.
By the way, don't let your spouse/partner talk you out of proper bookkeeping just because they do your tax return. Sure, writing may start as a hobby, but things can change in a flash. If your other half doesn't know what they are doing or are just plain damn lazy, it's time to find a CPA for both of you.
Or maybe find a significant other who's more supportive of your dreams.
No comments:
Post a Comment