Business Tip #7 for Writers: Recording Income/Expenses
August 13th, 2012 → 8:00 am @ Carol
Aside from your writing (the bread and butter of your business!), good record keeping is one of the most important steps to a secure writing business. Need to brush up on your recording methods? Look no further! This brief section from my book, Business Tips and Taxes for Writers, will provide you with the tools and knowledge you need to record your income and expenses in a simple, organized manner:
“Income – You may wish to file all written evidence of your income into one folder. File all sales receipts, royalty payments, paid invoices from clients, and income statements from your Paypal or your website shopping cart. If your business is very active, you might wish to have several folders for your various types of income . . .
Expenses – Expenses are usually more complex than income and I recommend that you devote several folders to sort expenses by categories:
- Advertising
- Transportation
- Equipment and software
- Professional fees
- Contract labor to hire professionals
- Office supplies
- Internet service provider
- Cell phone fees
- Conference fees and hotel
In each folder, store your receipts, paid bills, sales slips, or whatever proof you have of business expenses.”
By keeping your records simple, you can focus more on what really matters in your business – your writing! You’ll thank yourself come tax time! Find more tips for organizing your business in Business Tips and Taxes for Writers, Chapter 8.
Carol Topp, CPA
Tax Deductions and other IRS Matters for Authors | WD Ghostwriting Services
10 years ago
[…] “Business Tip #7 for Writers: Recording Income/Expenses“-Now that we have established that your expenses can be deducted on your taxes, I’ve decided to include this post because it highlights the records you should keep to make sure you have documentation to support all of the deductions you deserve. She recommends a basic folder system. If you are comfortable with using computers, I recommend using an online software like Wave Accounting. It’s an accountant approved software that is free and can automatically import data from your PayPal and/or business banking account into their software using bank quality Internet security. If you need help, you can always sign up for a free consultation, find a local accountant in their nationwide database of accountants who are familiar with Wave, or pay a low fee for phone support. They even have a tool that allows you to record images of your receipts and connect them to your records. Learn more about record keeping in her other post: “Bare Minimum Record Keeping.” […]