Posted in Business Side of Writing, The Nitty Gritty of Children's Writing, Tools

It’s that time of year again

Time to set up for the new year’s record keeping.

First, a folder for 2021 Writing Finances.

Next, new spreadsheets:

  • Writing Expenses*
    • Used my template and updated the year.
    • Transferred recurring expenses from last year’s writing expenses to the new spreadsheet.
    • Entered January 1st car mileage (same as year-end mileage for 2020).
  • Writing Income**
    • A simple “save as” since I have a template that has my recurring payments.

Then, updated others with new tabs for 2021:

  • Instructional spreadsheet where I enter student lessons.
  • Google drive sheet for our online critique group schedule—we have a moderator each week and keep track of which two writers are presenting a manuscript.

These processes take an hour or two.

*The categories on Writing Expenses’ spreadsheet are:

  • date
  • expense item (event, address; postage to submit manuscript, etc.)
  • agent/publisher/magazine (and those extra details, if needed, such as to whom)
  • manuscript
  • mileage driven
  • other car expenses (tolls or parking fees)
  • advertising (website hosting, domain renewal)
  • office supplies (those things you need to run a home office: paper, printer ink, etc.)
  • travel (airfare, taxis, hotel)
  • meals (while traveling–only a portion is deductible)
  • misc (where I put conference fees)

I have a worksheet for each month with a year-end sheet that pulls the totals from each month and gives me a grand total.

**The categories on Writing Income are:

  • date
  • payment from whom or what:
    • teaching
    • critiquing
    • book royalties
    • flat fees
    • magazine and online articles/stories
    • speaking
  • amount

I have my spreadsheet set up to auto total all the amounts.

Time to double check the old year’s record keeping.

For me, I have to print out the expense and income spreadsheets to make sure that every entry has an amount (money or mileage as appropriate). I always find a few errors. Once they are all corrected, the reprinted sheets are stapled together by category so when all the other tax documents come in, we’re ready to do our taxes.

Depending how accurately I’ve kept records, this probably takes a couple hours.

I find this pre-work makes my record keeping easier and quicker.

Posted in The Nitty Gritty of Children's Writing, Tools

Writing Business Expenses

picture courtesy of Jane M Sawyer on morguefile.com
money.jpg
Every year I plan to do better at keeping track of my expenses than the year before. The area I struggle is recording all those trips to the post office or writing events. Often, I remember to record the event or trip, but forget to enter the actual mileage. So then I have to dig for the mileage I wrote down on a piece of paper or the map showing my route.
In 2012, I did pretty well at keeping it up-to-date.
Until I discovered I’d left off something else . . . a conference fee. And the taxes were already filed. Hmm, unclaimed expense from previous year? I think there’s a spot for that–must check it out when preparing 2013 taxes.
Several of my writer friends are just starting out with keeping track of writing business expenses. When I shared my personal info, one was shocked to see how many miles I deducted for 2012. I did a lot of travel by car, but the majority of it wasn’t big trips, just a lot of small trips adding up. For example, last year I joined a critique group that usually meets weekly. Let’s do the math. If roundtrip mileage averages 20 miles per week and the group meets only 42 weeks out of the year, then that is 840 miles in 2013. The IRS mileage deduction tax rate for 2013 is 56.5 cents per mile. That would allow a deduction of $474.60. for a legitimate business expense. (Read IRS publications for full details. Start with Publications 334 and 583.)
Conference fees, travel, hotel and meals add up really fast, too. Not all are fully deductible, but if you don’t know what you paid, how can you know how much to deduct? Accurate record keeping is necessary.
So how do I keep track of my expenses? With a spreadsheet. I have columns that I created long ago using a Schedule C as my model. My column headings are:

  • date
  • expense item (e.g. roundtrip mileage to event, address; postage to submit manuscript)
  • publisher/magazine (or those extra details, if needed, such as to whom and what I’m submitting)
  • miles (you also must keep track of the car mileage at the beginning and end of the year)
  • other car expenses (tolls or parking fees)
  • advertising (e.g. website)
  • office supplies (those things you need to run a home office: paper, postage, etc.)
  • taxes (e.g. sales tax on any books you sell yourself)
  • travel (airfare, taxis, hotel)
  • meals (while traveling–only a portion is deductible)
  • misc (where I put conference fees)

Someone else might need different columns. I am by no means a tax consultant!
I find if I don’t immediately enter trips to the post office in my spreadsheet, I forget when I did them. That means I lose out on those miles that I actually took. So what’s a writer to do? One writer says she puts her trips on a calendar–at tax time she can go back and garner the information from that. I thought I might try something new and that’s a mileage tracker app. There are a number of free ones. Looks pretty easy to enter appropriate information. But again, it’ll only work if I actually do it.
Right now I have some receipts I haven’t entered. I’d better go do that. And photocopy the receipts for my records as receipts fade. Besides it’s easier to have standard size sheets with several receipts than those small strips of paper.
Hope this has been helpful.