Oct 08 2008
Prepare Early for Tax Season
As you begin to make income from your writing business, you need to be more diligent about organizing and keeping track of your finances. I find that it helped to list out all of my jobs in an Excel file and add columns showing how much I make as well as the deadlines. Then every time I receive a payment, I set aside 15% of that money for tax season. As a sole proprietor, you have to remember to take money out for taxes so that you are not surprised when you have to pay money back. You should also keep all of your receipts that are related to your business, because you will be able to use these as deductions. If you had to buy supplies like paper, staples, paper clips, etc. or more expensive items like software or a computer and printer, keep track of these purchases by keeping receipts in a business file. This will help reduce the amount of money you have to pay back for taxes.
