As a voiceover artist, most of us tend to be more creative and less concerned with the tedious details of things like bookkeeping. However, as mundane as it seems, when it comes to running any business, keeping your accounting in order is essential. You don’t want to be that person scrambling right before your taxes are due—only to send off your “financials” in a bag stuffed with receipts. You don’t have to be that person! Here are some bookkeeping tips to help you keep your voiceover financials organized:
Maintain thorough records
Organize your records as you move through the year. Keep track of everything that’s going on because if you’re keeping a close eye on your financials, then it’s easier to spot something that has gone wrong. Being unaware of any problems allows them to be unattended, leaving you with a mess.
Set time aside monthly
Since you most likely work for yourself, probably from home or even on the road, you can claim a lot in monthly expenses. Set a block of time aside each month to work on your accounting. Don’t wait until the end of the tax year.
Invoicing
Go ahead and send off invoices to your clients—even if the project isn’t finished yet. Set up a spreadsheet with every invoice for each client. Include the client, total amount, project, and the date you submitted it. It’s simple, yet highly efficient and easy to maintain.
Expenses
Keep a spreadsheet with your daily/monthly expenses. Enter the expense as soon as possible. Otherwise, you will spend hours sorting through receipts. Also, it is wise to keep your receipts or scan them onto your computer for your records. As a backup, keep a hard-copy of your receipts. Just tape them to a blank sheet of paper with the month written on it, and then file them for safe keeping.
Deposits
Deposit all received money straightaway. Do not let those checks sit around on the counter at home. By depositing your money immediately, it ensures that your records stay properly maintained.
Record everything
Keep an audit trail by recording everything. Being audited is a headache that can be avoided by keeping impeccable records. Perhaps, you find it tedious to handle your bookkeeping, but by keeping up with it, you’re reducing the likelihood that you’ll be audited by the IRS.
Tax payments and laws
Each time you receive a payment, set aside 25 percent for taxes. Decide whether you are going to pay your taxes every quarter (recommended) or if you’re going to pay your taxes yearly. If you set aside the money for the IRS, then you’ll have it on hand when you’re ready to make a payment. Also, learn the state and federal tax laws to ensure you stay within compliance.