Yesterday I started working on every bloggers and self-employed person’s favorite task of the year: tax time prep work. Good news is that I made more than I had ever planned on or realized. Bad news? I didn’t think I’d make as much as I did which means I didn’t save as much as I should’ve, and those my friends are my tax time woes.
On one hand it’s great that I ended up grossing double what I’d originally planned on bringing home – meaning that I made more in the 6 months the blog was profitable than I did in a whole year of working in any of my past 9-5 jobs, but it’s also a bust cause tax time is bound to be a little tougher than I had budgeted for.
There is light at the end of the tunnel though: being self-employed has its perks. Namely more tax write-offs than those that work a traditional 9-5 job. In other words it pays for me to spend more money during the year, when it’s work related, because it brings down my bottom line at the end of the year. Note to self: here’s your excuse to travel more in 2016, and never forget that those jeans you love are not a write off.
If you’re self-employed and aren’t a fan of book keeping take my advice and learn to love it, or in the least, tolerate it. I signed up for the Self-Employed QuickBooks edition, and it actually make the whole process pretty painless. It syncs to my checking account(s), credit cards, and PayPal, and then gives me the option to mark it a personal or business expense. Also gives me an avenue to track what I have coming in every month; it’s a win, win.