Ugh! The subject of taxes is NOT one that we writer types like to spend even one minute thinking about. We want to write and that\u00e2\u20ac\u2122s all we want to do. Sigh\u00e2\u20ac\u00a6 Unfortunately, freelance writing for money and publishing\/authorship are businesses. And bookkeeping and tax time are a part of any business. <\/p>\n
Hopefully, you have been keeping careful records throughout your stint as a writer\/author. What does this mean? For a freelance writer, you must log each article\/story you submit or sell and every job you do. Here\u00e2\u20ac\u2122s what you should include in your log:
\n\u00e2\u20ac\u00a2\tDate article was sent\/job was accepted.
\n\u00e2\u20ac\u00a2\tName of magazine\/client.
\n\u00e2\u20ac\u00a2\tTitle of article\/description of job or task.
\n\u00e2\u20ac\u00a2\tDate of publication\/end of job.
\n\u00e2\u20ac\u00a2\tCharges and payments.<\/p>\n
Be sure to leave a space for comments such as, \u00e2\u20ac\u0153photos sent March 3,\u00e2\u20ac\u009d \u00e2\u20ac\u0153rewrote and resubmitted piece per editor, Feb. 18,\u00e2\u20ac\u009d \u00e2\u20ac\u0153client will send new files June 15.\u00e2\u20ac\u009d<\/p>\n
Authors must keep records, too. I have a separate ledger for each of my books. I break each ledger into sections:
\n\u00e2\u20ac\u00a2\tExpenses (Costs involved in producing the book.)
\n\u00e2\u20ac\u00a2\tSales (Allow several pages.) *See description of Sales Page below.
\n\u00e2\u20ac\u00a2\tPromotion (review copies, give-aways, etc.)
\n\u00e2\u20ac\u00a2\tInventory
\n\u00e2\u20ac\u00a2\tBooks Out (Here I note books ordered by random bookstores, and other companies and individuals on consignment.)
\n\u00e2\u20ac\u00a2\tRegular Customers (I give each of my regular customers a section in my log book. For my local history book, this includes several local bookstores, museum gift shops, Chamber of Commerce, Board of Realtors, Amazon, etc.) <\/p>\n
*Each time I sell a book and when I collect payment for a shipment or delivery of books, I log those books on the Sales pages. I suggest creating these columns:
\n\u00e2\u20ac\u00a2\tDate of book sale (or when monies are collected).
\n\u00e2\u20ac\u00a2\tNumber of books sold (to that individual or bookseller).
\n\u00e2\u20ac\u00a2\tName of individual or bookseller. (Here I also note customers\u00e2\u20ac\u2122 home state. If they reside outside of California, I don\u00e2\u20ac\u2122t collect sales tax.)
\n\u00e2\u20ac\u00a2\tResale (for books sold to booksellers\/wholesalers only).
\n\u00e2\u20ac\u00a2\tBooks (for books sold retail only).
\n\u00e2\u20ac\u00a2\tTax (note tax collected when appropriate).
\n\u00e2\u20ac\u00a2\tNotes (was the book purchased through the web, at a book festival, etc?)
\n\u00e2\u20ac\u00a2\tTotal (I carry my figures to this column for double checking when tallying totals at tax time.)<\/p>\n
Any business comes with expenses. At tax time, you\u00e2\u20ac\u2122re going to want to offset your earnings using deductible expenses. I recommend devising a workable system of collecting and logging receipts. I toss my receipts into a file folder and deal with them once a year. It seems like a good system, until it\u00e2\u20ac\u2122s tax time and then it\u00e2\u20ac\u2122s a pain. Does anyone have a better solution? What can you deduct? Practically any expense related to your business. For example:
\n\u00e2\u20ac\u00a2\tShipping and postage (except when the customer pays for shipping).
\n\u00e2\u20ac\u00a2\tTelephones\/fax (I believe you can deduct only a portion\u00e2\u20ac\u201dcheck with your accountant.)
\n\u00e2\u20ac\u00a2\tMaterials, classes and books related to your business.
\n\u00e2\u20ac\u00a2\tTravel expenses to signings, presentations, etc.
\n\u00e2\u20ac\u00a2\tWriters\u00e2\u20ac\u2122 conferences, book festivals, etc.
\n\u00e2\u20ac\u00a2\tOrganization dues when it relates to your book or business.
\n\u00e2\u20ac\u00a2\tNew equipment purchases (computer, printer, software, powerpoint projector, etc.)
\n\u00e2\u20ac\u00a2\tServices, such as editing, promotion, cover design, printing costs.
\n\u00e2\u20ac\u00a2\tItems such as bar code, ISBN, PCIP.
\n\u00e2\u20ac\u00a2\tSupplies such as paper, post-its, mailing labels and mailers.
\n\u00e2\u20ac\u00a2\tYour web host, Internet hookup, etc.
\n\u00e2\u20ac\u00a2\tMail box rental if it is for business<\/p>\n
I am not an attorney or an account. When I need legal advice or tax help, I hire these experts and I suggest that you do the same. This blog entry is designed, however, to give you an idea of the importance of keeping excellent records and maintaining relative order in your freelance or publishing business.<\/p>\n","protected":false},"excerpt":{"rendered":"
Ugh! The subject of taxes is NOT one that we writer types like to spend even one minute thinking about. We want to write and that\u00e2\u20ac\u2122s all we want to do. Sigh\u00e2\u20ac\u00a6 Unfortunately, freelance writing for money and publishing\/authorship are businesses. And bookkeeping and tax time are a part of any business. Hopefully, you have […]<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3,4],"tags":[],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t