I semi-retired in June 2022 and no longer offer tax or business consultations. I recommend that you consult a local CPA experienced in small businesses accounting.
If you want to turn your writing into a business, talk to your CPA about about all aspects of starting your own business.
- creating a business plan
- taxes
- record keeping
- choice of entity (sole proprietorship, S corporation, LLC, etc.),
- hiring help
- sales tax
- marketing
- managing inventory
- pricing
- or whatever is on your mind
Set Up Record keeping on paper or the computer
I believe you need a good accounting system in order to succeed in business. If a business can’t see when and where it’s making money, that business is in serious trouble.
Setup:
Frequently a writer might install and set up his or her own accounting software without seeking the advice of an accounting professional. As a result, the software is not properly set up and accounting transactions are not properly entered. This ends up being a mess at tax time. The writer winds up spending more time and money to get the system straightened out than he or she would have spent to have someone help in the first place.
Maintenance
After your system is set up and you are entering your day to day transactions, it is important that what you have regular reviews to ensure that you are correctly entering transactions and getting the most from your accounting system.
Don’t underestimate the importance of bookkeeping for your company. Consider the following facts:
Accounting records Updated Survival Rate
At least monthly 79.7%
Quarterly 71.5%
Half-yearly 49.9%
Yearly 36%
Source: The Small Business Book; Robert Hamilton and John English
