I’m happy to report that my taxes are done, but I spent most of 2 months working on them. Why? Because my accountant had given me incorrect advice when I started my business in 2010 and told me I didn’t have to file until I had income. Nope. When I called the IRS, the nice lady explained that I had to “claim expenses in the year they were incurred.” My CPA was wrong.
Somewhere during my online travels, I read that many CPA’s know very little about small business. I now think that might be true. Regardless, we artistic-types tend to surrender all of our book-keeping and tax decisions to our accountants. We don’t understand what’s going on. We’re scared of taxes. And that makes us bad business people.
As I was looking online for tax advice, I came upon http://junewalkeronline.com/. June Walker works with “indie’s” (ie: independent contractors). She has a very informative website. And she has a great book called “Self-Employed Tax Solutions: Quick, Simple, Money-Saving, Audit-Proof Tax and Record-keeping Basics for the Independent Professional.”
After reading this book — and I did read it from cover to cover — I felt like I had a much better understanding of record-keeping and taxes. It made me feel informed. Ultimately I prepared my own tax return, for the first time in 20 years, and felt empowered to manage my own business for the first time.
I have no relationship with June Walker, other than buying her book. And I’m not suggesting that your business doesn’t need accounting and/or tax advice. I’m saying that small business owners need an elemental understanding of the accounting/tax side of our business. And you don’t have to go any farther than this book.