Are You Ready For Tax Time?

Posted by Art Thompson on August 24, 2010 at 11:24 pm

As we approach the end of the year it is time to be thinking about if we have our income and expense records
organized to be ready for the January 15 Estimated Tax filing.

Using accounting software greatly reduces the pain. Some points to consider:

• Do you have easy-to-use software like Quicken or Quick Books?
• Do you have a chart of accounts set up with the help of an accountant?
• Do you have a separate checking account for your business, even if you are doing photography part time?
• Have you kept entry of your income and expenses up to date in the software?
• Are you keeping your records organized receipts for business expenses, written records of business
  mileage, copies of household expenses if you qualify for a home office deduction.

Preparation of annual tax returns
For those who file a Schedule C with their personal return, being able to print out a report of income and
expenses by tax form line number greatly simplifies the job, and can save you substantially when you take it
to your tax preparer.

Analyzing Income and Expenses

Do you know what percent of your income comes from each type of photography?

What percent of your expenses are advertising and promotion, utilities, supplies, office expense, etc.?

By knowing the answers you can make any changes needed to make your business more profitable.

Art bought Uptown Studio in 1978 after working for Chromalloy Photographic Industries doing highvolume
family portraits for church directories and bank promotions, and training many photographers.
Upon buying the studio he consulted a professional to help him set up an initial chart of accounts to aid
in tracking income and expenses. He later sold the studio since nearly all of his business was on location.
He is now semi-retired.