Indie authors use cash accounting method

\nWhen returnning stage business concern of Writing your self-publishing business as an indie author, youll want to elect an history method that sets the rules youll physical exercise to determine how your income and expenses ar kept token of and when they are describe to the IRS. \n\nThere are two basic methods: funds or accrual. The property method requires you to handle income in the appraise category that you receive it. So if you were paid $1000 in July, then(prenominal) it is filed on your taxes for the division in which that July fell. The accrual method requires you to history income in the tax year that you make it. So if you earned $2000 during elevated for services provided entirely were only paid $1500, you hitherto would report $2000 in income on your taxes for the year in which August fell. \n\nAs an author, you almost certainly will employ the cash method. The accrual method is postulate if you have an inventory, or goods that are held for sal e. Still, even if you purchase copies of your phonograph recordings and cerebrate items (such as T-shirts, coffee mugs, etc., that tug your prevails), which you sell at intelligence readings, you almost certainly adoptt hold enough inventory that the IRS would require you to custom the accrual method. \n\nIf you own more(prenominal) than one business, you thunder mug use different methods for each one. So, if you run a ma and pa store or an online business in which you must use the accrual method, you could treat your book revenues as a secernate business and use the cash method for it. \n\nIn short, accounting for most indie authors is more or less simple. Just keep track of your revenues (books sales, payments for speaking, etc.) and your expenses (printer cartridges, paper, pens, gas for travel to book readings, etc.) and youre good to go. careless(predicate) of your expenses, your total revenue is your crude income; whatever you earn from Jan. 1 to Dec. 31 must be reported to the IRS and your state tax collection agency the side by side(p) April 15.\n\nProfessional Book editor: Having your novel, short story or nonfiction manuscript proofread or edited onwards submitting it can prove invaluable. In an economic climate where you administration heavy competition, your writing involve a second center of attention to give you the edge. I can provide that second eye.\n