bookkeeping – Random Thoughts

Note To My Fellow Dinosaurs

I was at my veterinarian’s office and I quipped that if they were an airline I’d be getting frequent flier miles as often as I find myself going in there. The lady behind the desk said, “We have a rewards program. You need to be on it, it will save you a lot of money. Just go to our website and download it.”

I went looking for Cedarwood Veterinary Hospital’s rewards program. I found it and was sent to the PetDesk web site where I found:
. What devices does the app work on?
. PetDesk is available on IOS and Android devices (Mobile or Tablet).

Not available for a Windows laptop. Rats! I felt like lodging a complaint for discriminating against us dinosaurs who don’t have a smart phone. I decided instead to gripe about it to my best bud: Electro-Man Mike.

Mike is a retired network engineer who knows computers, networks, and security stuff inside and out. Mike told me that Android emulators are available to run Android aps on a windows machine. He even gave me a link to a web page that listed and reviewed a fair number of them. I went with BlueStacks, the top rated emulator. Top rated and free … can’t beat that!

I installed BlueStacks, booted it up, went to the Google store from within the emulator, located the PetDesk ap, and installed that. When I booted up PetDesk it asked for a small amount of information and WHALA: my veterinary records were sitting there in front of me. It was kind of spooky how easy that was.

So if you encounter any other of us dinosaurs who don’t have a smart phone but want to use one or more aps made for an Android phone, tell them to Google “BlueStacks Android Emulator”. And try not to get stuck in a tar pit.

This Business of Writing: Direct Expenses

Today, Dear Reader, we conclude the series on the business of writing and welcome back Brigitte A. Thompson as she shares her professional advice as an accountant and author.

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Bookkeeping is an essential part of the business of writing. Determining what you can claim as a business expense and how to substantiate those deductions require an understanding of the Federal tax code.

Some common direct expenses for writers are listed below along with tips on how to make them deductible. Continue reading “This Business of Writing: Direct Expenses”

Tax Tip: Automobile Expenses for Writers

We welcome back accounting professional and author, Brigitte A. Thompson as she continues her helpful advice to writers with a tax tip.

Automobile Expenses for Writers

Driving to the local office store to purchase writing supplies can generate a tax deduction with proper documentation. This is what you need to know.

The miles that you drive which are related to the operation of your business, or the actual expenses required to maintain your automobile can generate tax deductions. This is one of the most overlooked tax deductions for writers.

You will need to choose one method based on the options below. Continue reading “Tax Tip: Automobile Expenses for Writers”

This Business of Writing: Recordkeeping

Today, Dear Reader, we continue the series on the business of writing and welcome back Brigitte A. Thompson as she shares her professional advice as an accountant and author.

Bookkeeping is an essential part of the business of writing and includes storage of receipts, invoices, statements as well as all the required documents to substantiate both income and expenses.

Business Recordkeeping Options for Writers

To justify expenses, it is important to establish a system of recordkeeping that works for you. Some things need to be recorded daily, while others can be done weekly or monthly. It is imperative that you get into the habit of saving and recording everything related to your writing business. All invoices, receipts, credit card slips and bank statements are essential documentation that should be kept. Continue reading “This Business of Writing: Recordkeeping”

This Business of Writing: Ordinary and Necessary Expenses

Today, Dear Reader, we continue the series on the business of writing and welcome back Brigitte A. Thompson as she shares her professional advice as an accountant and author.

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Bookkeeping is an essential part of the business of writing, especially identifying and tracking expenses. Business expenses are considered an operating cost. The more legitimate business expenses that we can document, the lower our tax payments will be.

Ordinary and Necessary Business Expenses for Writers:

The Internal Revenue Service (IRS) requires that our writing expenses be ordinary and necessary in order for them to be acceptable. An ordinary expense is defined as common and accepted in our profession. A necessary expense means we need to spend this money in order to operate the business. The expenses must not be considered extravagant. They must be an essential part of doing business as a writer. It is important to differentiate between personal expenses and business expenses. Continue reading “This Business of Writing: Ordinary and Necessary Expenses”

Tax Tips for Writers: Business Meals

We welcome back accounting professional and author, Brigitte A. Thompson as she continues her helpful advice to writers.

Writers may choose to meet with their agents over lunch or they might arrange to meet a subject to interview at a local bagel shop. The cost of the meal can be a tax deduction with proper purpose and documentation.

1. The primary purpose of your business meal must be related to your writing business.

2. You must conduct business during the meeting such as discussing the storyline of a new book or determining which publications are interested in your current article.

3. Be sure to save the receipt. It should contain pertinent information such as the name of business, location, date of the meeting, time, who was present, total charge, and how it was paid for. You can use the back of this receipt to record a summary of what was discussed.

The amount you can deduct is limited to 50% of the actual unreimbursed costs. The IRS is considering an increase in this amount to allow 80% reimbursement. As of this writing, the deduction has not been raised. You can Visit the IRS Web site for updates.

accounting, bookkeeping, author © Brigitte A. Thompson, Datamaster Accounting Services, LLC
Author of Bookkeeping Basics for Freelance Writers available on Amazon:

The information provided is intended to be general and based on the Federal Tax laws of the United States. As such, it is subject to change. This information is not intended to be used as a substitute for financial or legal advice. Be sure to consult your tax advisor on all tax matters.

This Business of Writing: Accounting Methods

Today, Dear Reader, we continue the series on the business of writing and welcome back Brigitte A. Thompson as she shares her professional advice as an accountant and author.

A business can be operated under one of three methods of accounting; cash, accrual, or hybrid. The IRS will be automatically informed of your choice when you file your first business tax return. If you decide you would like to change your accounting method, you will need to get approval from the IRS using Form 3115, Application for Change in Accounting Method which is available on their web site IRS.gov. Continue reading “This Business of Writing: Accounting Methods”

This Business of Writing: Legal Organization

Today, Dear Readers, we begin a series of posts by accounting professional and author Brigitte A. Thompson of Datamaster Accounting Service LLC. Please make her welcome as she shares her expertise with us all.

Writers work in all different genres and write for a variety of media outlets. Some of us are business writers, others create romance novels and many write articles for magazines or copy for web sites. Putting words into print is our profession, but dealing with the financial aspects of our writing business can be challenging. This series of blog posts can help!

Legal Organization for Writers

There are several forms of legal organization to choose from when establishing your business. The most common form for a writer is a sole proprietorship, but there are other options. You should understand the choices and speak to a lawyer, accountant, or tax preparer to find out which option is the best for you. Continue reading “This Business of Writing: Legal Organization”

This Business of Writing: Setting Up Accounts

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This is the second in my series of articles on the business side of being a writer. Originally I planned to use this series as part of a book on this topic, until I discussed the book with a CPA/Registered Investment Counselor/Author. He thought the book was a needful thing, for many authors seem under-prepared to deal with the financial side of their chosen career, but he suggested that I market the book as a sleep aid. Bookkeeping just isn’t exciting (unless you’re writing fiction about a bookkeeper who is a sex-addicted, vampire/zombie, who goes around murdering people. That, people might buy.) To see if he was right I decided to try out a series of articles here on my blog and judge your reaction to them.

As I was preparing this series I was contacted by Brigitte A. Thompson, President of
Datamaster Accounting Service, LLC and author of Bookkeeping Basics for Freelance Writers. Brigitte offered me a series of posts on accounting for authors in exchange for the opportunity to promote her book. Since she is an accounting professional and an author, her advice would be more accurate and probably more valuable than mine. So, starting with my regular post on Monday we’ll launch into Brigitte’s series on bookkeeping for authors. But first, I’m going to slide (most of) the post I had written for Monday in here today because I think it has some things to say that some of you may need to hear and don’t seem to be covered in detail in the upcoming series. Brigitte’s series starts on Monday. Continue reading “This Business of Writing: Setting Up Accounts”

About This Business of a Writing Business

I have a friend, a retired aerospace engineer turned artist, who hates bookkeeping. He sells his art at local art shows, and from his home. When he makes a sale, the money goes into a steel cash box. When he buys supplies the money come out of the box. When he wants to know how much money he has made from his art, he counts the contents of the cash box. This is elegant in its simplicity, but would be a nightmare should he ever be audited. Are you a hobby writer or a writing business? Continue reading “About This Business of a Writing Business”