Check out these 4 mistakes writers commonly make:
1. Doing your own tax return
You are in business and should get professional assistance with your tax return. Focus on what you do best – writing and selling your book – and let the tax professionals do what they do best – tax returns.
2. Taking incorrect tax deductions
An incorrect tax deduction can mean you pay too much in taxes, or at worst, face an audit by the IRS. Learn what deductions are allowed. Your accountant can help you take every deduction you are entitled to take.
3. Failure to count inventory at least annually
It is very important that you count your inventory at the end of the year so that your cost-of-goods-sold calculation is correct. You may be paying too much in taxes if you miscalculate.
4. Poor record keeping
Studies show that business success follows good record keeping. Without good records, you will not know if you are making a profit or loss, nor will you know what sells well.
Learn how to run your writing business better from my book, Business Tips and Taxes for Writers.
Carol Topp, CPA