Monday, April 6, 2015

Why Do Authors Need A Bookkeeper?

As an author, I've been able to talk to many authors and consult them on various things. Because many authors have publishing companies, it's imperative that they have a bookkeeper.

I'm sure a lot of you are looking at me strange when I say that. But let's face it, authors write and count money. But if you're good at managing your books and having good records when it's time for taxes, or if you are good at doing your taxes, then you are exempt from this article. 

I write this article for those who are not good at managing your books or you just want to minimize your taxes legally (and lessen the risk of an IRS audit). If this is you, then hiring a bookkeeper is not a bad idea. 

What are some reasons to take on a bookkeeper:
1. Starting a publishing company - unless you have a substantial amount of working capital (money) to where you don't need to apply for a small business loan, then you will need a bookkeeper. He or she will handle your books for a reasonable fee and present you a financial picture via charts, graphs, etc. so when you go to apply for a loan, you will have something to present. 
2. You have been hit with back taxes - a bookkeeper will help you manage your personal and business records so when the IRS wants to see your records, you're empowered to face them and not run from them. 
3. Tax season - the last thing you want to do is to wait till the last minute to go to your bookkeeper with your receipts when it's time to file. You want to be proactive with your taxes and reactive. 
4. Your personal life can get back in order - sometimes your life will come to light when you see the numbers in front of you. 

Hope this helps. It's one thing to make money, it's another thing to keep it!

Stay tuned, and I have one more article next week (right before that April 15th deadline).

The Mayne Man

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