Tax audits don’t have to be the harbingers of IRS doom! So before you try to hide all your assets in an off shore account, exhale and read on.  By practicing a few easy and practical steps, tax time, and yes, even an audit, can become nothing more than business as usual.  By practicing prevention, you won’t need a cure Keep accurate records.  A monthly folder with all your business receipts filed appropriately can save you a migraine at the end of the year!  Keep a sheet of paper with categories on it such as postage, meals, gas, conference fees, etc., and write the amount of the monthly expenses in the correct category.  Total the individual categories at the end of each month.  Then, total the individual monthly category totals at the end of the year and voila!  You’ve got your monthly and yearly expenses completed. Declare all income.  You edited Sally Jane’s manuscript for $50 … [Read more...]

Contracts are legal documentation of your agreement with another person, organization or entity.  In this case, we’re discussing your contract with your publishing house.  There are so many things to know (even if you have an agent you need to know your business and that includes contracts) about contracts that I’m just going to list the most important ones and leave you to do your homework on the rest. Is the author being paid an advance?  Don’t laugh.  You’d be surprised at how many writers get so excited about the contract offer that they miss this and don’t even wonder about it until weeks down the road when they think they should have already have received a check.  Know whether you’re getting an advance against royalties or just royalties.  Also know the payout structure of the advance and/or royalties.  It can make a big difference in how you plan your finances. What rights … [Read more...]