Indie Author Biz Tips
Short episodes (5 minutes or less) with quick tips for your author business, really any business.
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Biz Tip #02: Separate Your Business and Personal Checking accounts
When you separate your business and personal accounts it makes finding the data you need about your business easier, not to mention doing your taxes. It also feeds into your mindset.
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Hey, fellow Indie Authors!
I’m Tora Moon and I’m your Indie Author Biz Guide and this is Indie Biz Tips.
This is tip number two. Separate your business and personal bank accounts.
Do you have a business checking account for your publishing company?
Hopefully you’ve taken the first step in treating your writing as a business and filed the paperwork to set up a DBA because you’ll need the paperwork for that for this step and this next step is to separate your personal and your business bank accounts and your money. You want them separate.
This step isn’t important just because separating your business and personal money makes it easier tax time. It’s important because it feeds into your business mindset.
Having everything funneled through your business checking account will help give you the data that you need to make decisions. You’ll know if you’re making money or not. You’ll know how much you spent for advertising or to purchase your books because it’ll be right there in your business accounting.
Having separate bank accounts helps you make business decisions better because you’re looking at just your business money and if you find out everything to do with your business, author business, through your business account and pay the bills from it. Receive all the money in from it. It makes having the data that you need later to make decisions easily accessible. You’re not having to go through your accounts and you’re like, Oh, okay, I know I bought some books, where did I pay for them? No, it’s all through your business account.
Now, if you need to pay expense and you don’t have the money in your account, which certainly happens when you’re first starting, then the best thing to do is transfer that money from your personal account into your business account and then pay the expense.
The action step for this tip is to set up a separate business checking account.
If you want to know more about how to treat your writing as a business, get this book: Business and Accounting for Authors. You can get it on my website and it’s available in e-book, print, or audiobook.
Or if you must, It’s available at all the retailers.
So, I help you found this tip helpful, and we’ll see you next time.