![]() ![]() Word to the wise: Hire a CPA in addition to your bookkeeper. That way, you’ll have it on hand when you need to file your freelance writer tax return. Spoiler Alert: You can download this entire blog post as a guide at the bottom. It’s hardest to navigate the quagmire of tax law. It’s harder to keep track of all your receipts and keep organized records of spending. Many, many conversations with freelancers about business finances have led me to this conclusion: MOST freelancers miss out on MOST tax write-offs.Įither through ignorance or sheer laziness, they put money in Uncle Sam’s pocket that could have been legally kept.Īdmittedly, it’s hard to remember all of those write-offs, come tax season. Minimizing my tax liability maximizes the cash I keep in my pocket. ![]() That’s my job, not my bookkeeper’s or CPA’s. ![]() Nearly every day I must carefully consider when and how to make a purchase so that I can minimize my tax liability. I also recommend that you learn accounting and tax basics so that you aren’t flying totally blind. Yes, I recommend that you hire other people to be better, smarter, faster than you are at certain necessary business activities. (I’ve written before about how one of the three smart reasons to spend money is to reduce risk.) Sometimes you have to spend a little money to better play to your strengths.Įven so, because I was able to spend more time on high-leverage tasks, my increased productivity (and billing) more than offset the monthly cost of bookkeeping fees.įor a professional to keep my books also makes an audit by the IRS less likely. I most definitely do not feel giddy when thinking about cleaning up somebody else’s accounting mess.Ĭlearly, she was the right woman for the job, and by hiring someone who was BETTER at accounting than I am, I freed myself up to focus on the things I’m good at: writing, marketing, and selling. She told me that when she received the first big envelope of receipts she felt “giddy.” My first bookkeeper studied accounting in college and has worked for a wide range of business types and sizes-everything from large corporations to small businesses freelancers like myself to non-profits. I’ve got a good head for numbers, and I usually made As in math.īut every time a task related to accounting edged toward the top of my to-do list, I had to stifle a yawn. One of the best things I ever did for my freelance writing business was hire a bookkeeper. ![]()
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