Hello all! It’s the season to start thinking about taxes, and for a lot of small business owners (scopists, proofreaders, and transcribers including), that can be a daunting task. We are better with words than we are with numbers, after all. I would recommend that all small business owners start tracking their business expenses separately straight from the get-go. It will save you a ton of frustration and time later in life.
An easy way to do that is to get accounting software and organize all of your invoices, receipts, and whatnot on that. I use FreshBooks. It was recommended here by another scopist with a helpful website. She hasn’t updated in a while (hey, we’re all busy), but her blog posts are still relevant and insightful.
FreshBooks is an easy, affordable way to start tracking your finances. It’s both intuitive and scalable, allowing you to add more clients as you need and pay less when you don’t. You can even add in your accountant so they can directly download whatever reports they need for whatever it is they do (they do a lot).
Talk to your accountant about what you can deduct as business expenses. You may be surprised. Remember, as an independent contractor/small business owner, you’re responsible for every department, including accounting. Don’t ignore it or pretend that you have a handle on it when you don’t.
“Death, taxes and childbirth! There’s never any convenient time for any of them.” – Margaret Mitchell, Gone with the Wind