QuickBooks Software and Publishers

QuickBooks software can be used for any business owner. Publishers, writers, and authors in particular can benefit from using the software. In a recent writer's conference I shared information to help this group take their businesses to the next level.

QuickBooks software can be used to track income, record expenses, prepare financial statements, and assist in preparing tax returns. Income for the writer is any and all income or payments received for articles, editing work, script writing, or ghost writing. If you have income in any form including bartering it should be included in income.

Writers may incur a lot of expenses. The expenses incurred from professional fees and dues may come from the following fees: association dues, credentials, license fees, professional association or union dues. Another common expense area would be in supplies expenses. These might include expenses for briefcases, business meals, clerical service, computer software, customer lists.

The IRS has a test to determine if an expense is deductible. According to the IRS the expense must meet the following three criteria.

1. Incur in connection with your trade, business or profession. 2. Must be ordinary and necessary. 3. Must NOT be lavish or extravagant under the circumstances. If your expenses do not stand up to this test they will be disallowed.

Record keeping is extremely important for any business. It is important to keep receipts for all business transactions. Use receipts to record each transaction in QuickBooks. After you have recorded the transactions, QuickBooks allows you to create financial statements. The three most common financial statements include

1. Balance Sheet 2. Profit and Loss Statement 3. Cash Flow Statement.

QuickBooks also allows for set up of tax return line items. Each income and expense item for example can be linked to an item on the tax return you complete for your type of business. The information can then be transported into the tax return software. Take advantage of all the benefits of using QuickBooks software.

By Edna Washington

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