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Author: Jake Snelson

Taking Stock Annually

Taking Stock Annually: Being Prepared for an Accident, Emergency, or Death

Tax season is not only a great time to get your finances in order, but it’s also an opportunity to update other important information about yourself in the event of an accident, emergency, or death. While of course you hope nothing of the sort happens to you, it is always a possibility. Being prepared for the worst can help your friends and loved ones cope if difficult times were to beset you.

Taking Stock Annually

Here are a few quick tips on taking stock annually and being prepared for the unexpected:

  • Review (or write) your will. Take the time to update your will if you’ve gained any new assets, if your executor or plans for guardianship for children or property have changed, or if you’d like to change your arrangements for money or property. If you haven’t written a will yet, it’s best to get that done as soon as possible.
  • Go over your estate planning and power of attorney. Setting up your estate to minimize costs and taxes helps you and your beneficiaries.  Talk to your accountant or attorney about this step.  Power of attorney can bring peace of mind knowing that someone you trust and who you have acquainted with your wishes will be handling your affairs in case of an impairment or death.  Complete the forms, either with your attorney or off the internet, and include them with your documents.  You may also want to give your POA a copy.
  • Make known any medical requests in the event of an accident or death. Give your specified DNR order, decide whether you’d like to be an organ donor, and make known any other medical requests you may have.
  • Update a file of usernames and passwords for all of your accounts. You may not want your social media accounts going on long after you die, let alone your subscription-based services. Leave login info for all online accounts and instructions on what you’d like done with them in the event of your death.
  • Include a balance sheet and income statement of your personal and business bank accounts. You’ll want your executor to know where these accounts are located and how to access them.
  • Create a contact information sheet that includes people you work with, friends, and other acquaintances that your close family may not know about but who should be contacted in the event of an emergency.
  • Store all of this information in a safe place. Some may feel comfortable with it in their homes, while others may choose to store it in a bank security box. Regardless of where it is stored, make sure it is safe, that someone you trust knows about it, and that it is accessible to the right person at the right time.
  • Update your family emergency plan. This should include how the family will communicate with each other in case of a disaster, where everyone will meet, along with a phone tree, updated contact information for everyone, plans as to who will check on whom, and the like. It’s also helpful to have a code word known amongst the family to let one another know there is trouble, without letting the bad guy know.
  • While you’re at it, go the extra mile for disaster planning. Refresh your 24 or 72-hour emergency kits in your home and car, and gather water storage or empty, clean, and refill existing water storage.

Prepared for an Accident

While this list may feel a bit overwhelming, it really doesn’t take very long to accomplish. Tackle it all at once, or take it one task at a time, but get it done. Having all of your important information updated and in once place will help you feel secure and ensure that you won’t leave a headache for anyone in the event of death or emergency.

Frequently Asked Questions

1. Why should I update my will during tax season?

Tax season is an excellent time to review and update your will because you’re already organizing your financial documents. If you’ve gained new assets, changed your executor, or want to adjust your guardianship or financial plans, updating your will ensures your wishes are accurately reflected and will save your loved ones from confusion later.

2. What is the benefit of reviewing estate planning and power of attorney annually?

Reviewing your estate planning and power of attorney ensures that your assets are managed efficiently, minimizing taxes and costs. Assigning a trusted person as your power of attorney gives peace of mind that someone familiar with your wishes will handle your affairs if you become incapacitated. Regular updates ensure that your plans remain in line with your current situation.

3. Why is it important to keep a record of usernames and passwords for all my accounts?

Having a record of your usernames and passwords allows your loved ones or executor to manage or close your online accounts in the event of your death. Without this information, managing digital assets, like social media and subscription services, can be time-consuming and challenging for your family.

4. How can I make my medical requests known in the event of an emergency or death?

To ensure your medical requests are honored, clearly document any specific wishes, such as a Do Not Resuscitate (DNR) order or organ donor status. Inform your family and healthcare provider about these decisions, so they are aware of your preferences in case of an accident or emergency.

5. Where should I store my important documents and emergency information?

Store all vital documents, including your will, estate plans, and emergency contact lists, in a secure location like a home safe or a bank security box. Ensure that someone you trust knows where they are and can access them in an emergency. Keeping these documents safe but accessible is essential for ensuring they are used when needed

Can I Pay My Family for Their Help with my Business?

Can I Pay My Family for Their Help with my Business?

So can you hire family? Absolutely.
In fact, hiring family members is pretty common amongst sole proprietors. Whether it causes strained relationships is entirely up to you, but here’s what you need to know in regards to taxes and paying family members. The Internal Revenue Services outlines the following regarding family help.

Employing Your Child

  • Wages of a child are subject to income tax withholding, Social Security, Medicare, and Federal Unemployment Tax Act (FUTA) tax if he or she works for:
    • A corporation, even if it is controlled by the child’s parent,
    • A partnership, even if the child’s parent is a partner, unless each partner is a parent of said child, or
    • An estate, even if it is the state of a deceased parent.
  • Wages are subject to income tax withholding, regardless of age.
  • Children under 18, are not subject to Social Security and Medicare taxes if the trade or business is a sole proprietorship or a partnership in which each partner is a parent of the child.
  • Children under 21, are not subject to FUTA tax.

Employing Your Spouse

  • Wages of a spouse are subject to income tax withholding as well as Social Security, Medicare and FUTA taxes if he or she works for:
    • A corporation, even if it is controlled by the individual’s spouse, or
    • A partnership, even if the individual’s spouse is a partner.
  • Payment to a spouse are subject to income tax withholding and Social Security and Medicare taxes, but NOT to FUTA tax.

Employing Your Parent

  • Payment for services of a parent employed by their child in a trade or business are subject to income tax withholding, Social Security and Medicare taxes.
  • Wages are not subject to FUTA tax, regardless of the type of services provided.
  • If your parent works for you, the wages you pay to them are subject to income tax withholding, Social Security and Medicare taxes. Social Security and Medicare taxes do not apply to wages paid to your parent for services not performed in your business, but they do apply to domestic services if both the following conditions are met:
    • Said parent cares for your child who lives with you and is under 18 or requires adult supervision for at least 4 continuous weeks in a calendar quarter due to a mental or physical condition.
    • You are widowed, divorced, or married to a person who, because of a physical or mental condition, cannot care for your child during that period.

Employing Other Family Members

So you’re not hiring your child, spouse, or parent. Can you still hire other family members, like aunts, uncles, cousins, or nieces or nephews? Yep. But there aren’t any special rules provided by the IRS for those family members. Their wages should be treated like any other employee’s.

If you have additional questions regarding hiring family members, feel free to drop us a line. We’d love to hear from you.

Interested in Learning More?

Schedule a free consultation with our team!

10 Easy Ways to Create a Healthier Workspace

If you work long hours in an office, you know how difficult it can be to stay healthy and fit. But, just because you spend the majority of your day sitting doesn’t mean you have to compromise your health. Here are ten quick and easy investments to make in your office to make it a healthier, happier place to work:

workplace

  1. Buy a mini fridge and stock up. You can snag one on Amazon for less than $100 and hook it up in your office. Fill the fridge with healthy, low-cal snacks rather than venturing over to the vending machine when that afternoon hunger strikes.
  2. Install an elliptical. If you’ve got the room and a tax return burning a hole in your pocket, purchase an elliptical or stair stepper for your office that you can hop on during your lunch hour to work up a quick sweat.
  3. Sign up for a healthy snack box subscription. Graze.com and Naturebox.com offer unique, healthy snacks delivered to your office for under $12 a month.
  4. Keep cool water bottles close at hand, or grab one of these top 10 cool reusable water bottles to keep you hydrated.
  5. Hang a mirror in your office to show your posture. Glancing over at it occasionally will remind you to sit up straight, reducing the pressure on your lower back.
  6. Start a chart for calendaring exercise. It may be as simple as a dry erase board or excel spreadsheet, but tracking your exercise is a good reminder to get out and get moving as often as possible.
  7. Set a timer for every hour or every other hour. When the timer goes off, go for a quick walk around the office, do a set of lunges or squats, or just stand up and stretch.
  8. Sit on an exercise ball. Ditch your comfortable office chair for a day or two and sit on an exercise ball to increase your activity and improve your health.
  9. Invest in a FItbit. You might be pleasantly surprised at how many miles you walk around the office each day, or it might serve as a good reminder that you need to up your activity.
  10. Use apps to track your food intake. Apps like Fitness Pal or Nike Running can keep you on track and get you moving. Challenge your coworkers to lose weight or run a race.

Use apps to track your food intake

As with any other task in the work place, small changes can make a big difference in your health as well. What are your favorite fitness tips and tricks for the workplace?

Frequently Asked Questions: 

1. What can I do to stay hydrated during the workday?
Keep reusable water bottles readily available in your office, ensuring easy access to cool, refreshing water throughout the day.
2. What are some strategies to incorporate exercise into my office routine?
Set a timer to remind yourself to take short breaks for physical activity, such as walking around the office or doing simple exercises like lunges or squats. You can also replace your office chair with an exercise ball to engage your muscles while sitting.
3. How can I track my physical activity and health goals at work?
Invest in a Fitbit or use fitness apps like Fitness Pal or Nike Running to monitor your activity levels and track your food intake. Additionally, consider starting a calendar or chart to document your exercise routine and progress.
4. What are some cost-effective ways to improve my office environment for better health?
Consider purchasing a mini fridge for healthy snacks, hanging a mirror to monitor posture, and installing simple exercise equipment like an elliptical or stair stepper if space and budget allow. These investments can significantly contribute to a healthier workplace environment.

Top 3 Things to Consider Before Starting a Small Business (from a CPA’s Perspective)


So you’ve got a great business idea, a plan to make it work, and you’re ready to set yourself on the path of entrepreneurship. No matter how prepared for success you are, there may still be a few things you haven’t thought of. Our CPA, Ben, discussed the possible pitfalls of a new business venture and how to avoid them this morning on Periscope. Being a small business owner himself, he’s learned a thing or two about what it really takes to run a successful small business.

  1. The first question you need to ask: Is there a market for my product or service? As harsh as it sounds, if there aren’t people out there willing to buy what you’re trying to sell, your business simply won’t succeed. There has to be some sort of demand for what you’re doing. The best way to determine this is to do some research. Use the internet, ask around, put it out on social media–ask questions like, “is this marketable?” “Would you buy this?” “Is there someone doing something similar to what I’m doing who is having success with it?” “Is what I’m offering both useful and interesting?” The absolute best way to determine if there is a market for your product or service though is to think hard about what problem you’re solving for consumers. This doesn’t mean that you have to sell something essential for survival or that your business has to solve a tremendous problem, but what you’re offering has to make their life somehow better. You could be solving the problem of time management by selling trendy and artsy planners/organizers, or you could be helping them write their will by offering legal advice. Regardless, you have to find out if there are people out there willing to put forth money for what you are pitching to them.
  2. Support from family and friends. Even if you’re planning to run a one-man show, the people in your life have to buy in to what you’re doing so you can achieve greater success. Running a business demands a lot of time and resources from individuals, and can be hard on families and relationships. Getting your friends and family members both interested and supportive of what you’re doing can really give you the extra push to succeed, as well as help you along on days when the path of entrepreneurship feels lonely and bleak.
  3. Take your expectations of time and expense and multiply them by three. As much as we’d all like to earn a six-figure income in a two hour work day, it’s not a reality for most people, especially business owners just starting out. Plan on your new business to taking three times as much money and three times as much time as you’re planning right now and you’ll be a little closer to reality. If you originally planned for two years and $10,000 to get things up and running, plan on six years and $30,000. You may be pleasantly surprised if things come together cheaper and quicker than that, but multiplying those projections by three is probably a little closer to reality. Hopefully, in the end, your business will also be three times more profitable than your original plan as well!
 

Take your expectations of time and expense

Follow along on Periscope (@vyde) on Wednesdays at 10 am MST for more business discussions, tips, and financial advice from Vyde’s CEO/CPA, Ben Sutton.

Frequently Asked Questions: 

How can I determine if there’s a market for my business idea?
Research is key. Use the internet, social media, and ask questions to gauge demand. Consider what problem your product or service solves for consumers.
Why is support from family and friends important for a new business owner?
Running a business can be demanding and isolating. Having the backing of loved ones provides encouragement and motivation during challenging times.
How should I adjust my expectations regarding time and expense for starting a business?
Expect to invest three times the initial time and money you anticipate. While it may seem daunting, this approach prepares you for the reality of business ownership.
What role does consumer demand play in the success of a business?
Consumer demand is crucial. Your product or service must address a need or desire, making customers’ lives better or easier. Understanding this ensures market viability.
Where can I find more business insights and advice?
Tune in to Periscope (@vyde) on Wednesdays at 10 am MST for discussions, tips, and financial advice from Vyde’s CEO/CPA, Ben Sutton.

When Should I Start Paying Quarterly Taxes for my Small Business?

If you caught Ben on Periscope this morning, he provided a quick overview on the basics of quarterly taxes for your small business. As a small business owner, you’re no stranger to Uncle Sam wanting his cut of everything you’ve make. While you may not need to worry about quarterly taxes during the first few years you’re in business, you’ll eventually get to a point where you need to start paying them…yes, four times each year.

Small business owners operate under a pay-as-you-earn system for federal taxes, rather than a W2 employee who has taxes taken out of their check before it hits their account. The IRS expects small business owners to be responsible tax payers, and softens the blow of a huge end of year tax bill by splitting it up into four installments. These are called quarterly taxes, and you’ll need to pay them if you anticipate your end of year tax bill to be more than $1,000. Use IRS Form 1040-ES to see if you’re tax bill might end up being more than that.

So what if you don’t pay quarterly taxes and you were supposed to? Well, unfortunately the IRS doesn’t forget it and you won’t fly under the radar for long. You’ll just pay your quarterly taxes all at once, when taxes are due in April. The penalty and interest for not paying your quarterlies is based on the difference between the amount you should have paid in for each installment and the amount you actually paid for as long as the underpayment remains outstanding.

Our CPA, Ben, suggests paying quarterly taxes for your small business if you plan to bring home more than $10,000 profit this year.

For 2016, quarterly taxes are due on April 18th, June 15th, September 15th, and then again on January 17, 2017.

How to Save Money on Your Taxes if You Were Uninsured in 2015

If you were uninsured in 2015, you may owe a penalty on your taxes this year. However, you can still save money by claiming an exemption, which about 70% of Americans are doing in 2016. A whopping 300,000 people who paid the penalty last year would have qualified for the exemption, according to the IRS. No worries, Mazuma won’t let that happen to you. Here is the good news and the bad news about being uninsured in 2015.

Here’s the bad news first: the penalty has increased since 2014. The penalty for being uninsured in 2015 is $325 per adult and $162.50 per child (up to $975 for a family) or 2% of household income, whichever is greater. Yikes. You’ll sometimes hear this penalty called the  “individual responsibility payment.” If you went without coverage for only part of 2015, you’ll only owe part of the fee.

There is good news, though! For some Americans who do not already have insurance through their employer, their parents, Medicaid, Medicare, the Veterans health care program, individual insurance, or healthcare.gov– you may be exempt.

The Affordable Care Act allows certain people to claim exemptions, even if they were uninsured in 2015. These people may be followers of particular religious groups, members of Native American tribes, and people who do not meet the minimum income requirement, leaving them unable to afford healthcare coverage.

For the most part, if you were uninsured in 2015, you’ll have to pay the penalty. But, here’s a list of specific cases where you may be able to get an exemption.

Exemptions include:

  • You’re uninsured for less than 3 consecutive months of the year
  • Your lowest-priced coverage option is more than 8% of your household income
  • You don’t have to file a tax return because your income is under the IRS filing requirement ($10,000 if single, 20,000 married filing jointly)
  • You’re a member of a federally recognized tribe or eligible for services through an Indian Health Services provider
  • You’re a member of a recognized health care sharing ministry
  • You’re a member of a recognized religious sect with religious objections to insurance, including Social Security and Medicare
  • You’re incarcerated, and not awaiting the administering of charges against you
  • You’re not lawfully present in the United States,
  • You may qualify for the Cancellation Hardship Exemption if you received a cancellation notice due to your health plan not meeting minimum requirements.
  • You also may qualify for a hardship exemption if your circumstances affected your ability to purchase health coverage

(List from Intuit.)

Still not sure if you qualify for an exemption? Give Mazuma a call, we can help.

Financially Fit This Tax Season

5 Tips on Getting Financially Fit This Tax Season

Tax season is in full swing and that April 18th deadline is coming quickly. If you missed the boat on setting financial new years resolutions (or maybe you fell off the boat and need to get back on), here are a few ways to revamp and get yourself and your business financially fit during tax season:

Tax season is in full swing

  1. Close out the 2015 year. A lot of taxpayers don’t actually know where they stand for the previous year until they get their taxes done. Even though you’ve still got a month left to file, it’s best to get your taxes done as soon as possible so you know your income and expenses for the previous year. Gather up your receipts and invoices and make an appointment with your accountant so you can officially close the books on 2015.
  2.  Be smart with your refund. Make a plan for what you’ll do with your refund before it hits your account. It’s too easy to just spend it away if you don’t have a spending/savings plan beforehand. Write down your goal so you’ll stick to it. Here are a few ways to invest your refund back into your business. On the other hand, if you owe taxes to the IRS, get them paid ASAP. You don’t want a looming tax bill all year long, although you can set up a payment plan with the IRS if you need to. Pay as much as you can as soon as you can, and plan to set aside money along the way next year so you’re not hit with a big bill next tax season.
  3. Pay yourself first. As a business owner, it’s easy to take care of everyone else and every other expense and then not have a paycheck at the end of the month. Rather than just keeping what’s left over as your paycheck, set yourself a salary and try to follow it as closely as possible. This also makes tax season a little less of a headache.
  4. Create a plan for the remainder of the year. If you didn’t create a plan in January, now is the time! You’ll know where you stand financially after you get your taxes done, so you can budget accordingly for the rest of the year. You may decide you only want to create your budget a month at a time, which is fine, but be sure to keep the big picture in mind as well. Here are a few tips on creating a simple budget for your small business.
  5. Find ways to save money. Again, now that you know where you stand this tax season, dig a little deeper into your budget and find ways to save money. Cut out unnecessary costs and get your spending on track. The best way to do this is to keep meticulous track of all expenses for a month or two, and adjust accordingly.

Cut out unnecessary costs

How are you getting financially fit this tax season? We’d love to hear in the comment below!

FAQs:

1. Why is it important to close out the 2015 year for taxes?
Closing out the previous year helps you understand your financial standing and prepare accurate tax filings based on income and expenses.
2. What should I do with my tax refund?
Have a plan in place before receiving your refund to avoid impulsive spending. Consider reinvesting it into your business or paying off debts to enhance financial stability.
3. What if I owe taxes to the IRS?
If you owe taxes, prioritize payment to avoid accumulating interest and penalties. Setting up a payment plan with the IRS can help manage the burden.
4. Why is paying myself first important as a business owner?
Prioritizing your salary ensures financial stability and helps streamline tax obligations, making tax season less stressful.
5. How can I create a budget for the remainder of the year?
After assessing your financial status post-tax season, develop a comprehensive budget considering both short-term and long-term goals. Regularly monitor and adjust as needed to stay on track.

quarterly estimated taxes

The Business of Blogging Part 9: Pay Quarterly Estimated Taxes

Now that you’re making money on your blog, you’ll need to pay quarterly estimated taxes. If you traded in your 9-5 day job for your blog business, you may not have even heard of quarterly estimated taxes. Here’s a quick rundown for you:

taxes were already withheld
If you worked for someone else and received a paycheck, taxes were already withheld and you didn’t have to worry about them. However, if you’re self-employed, you’re still required to pay those taxes. Those come in the form of quarterly estimated taxes. Quarterly estimated taxes cover social security, federal, and state taxes. You’ll need to pay quarterly taxes if you anticipate having a tax bill of $1,000 or more for your blog this tax year.

Here’s how to pay quarterly estimated taxes for your blog business:

Use Form 1040-ES to estimate how much you owe. A good rule of thumb is to take what your projected income is for the year, and divide by four. Take that number and multiply by 15%. This is the amount you’ll owe the IRS for your quarterly taxes. This amount is not exact though, and you’ll need to reference last years’ tax returns and follow the instructions on Form 1040-ES to determine how much you owe.
Quarterly estimated taxes are due on April 18th, June 15th, September 15th, and January 17th 2016. You can pay all four installments by April 18th, or submit your quarterly payment by each of these deadlines. The IRS allows you to pay quarterly estimated taxes online, by phone, or by mail.

Love this post in our Business of Blogging Series? You might also enjoy:

Separating the Blogging Myths from the Blogging Truths

Deciding on a Business Entity for your Blog

Obtaining a Tax ID Number and Proper Licenses to Run Your Blog Business

Start Making Money on Your Blog

Creating and Maintaining an Organized Bookkeeping System for Your Blog

Tracking Blog Expenses the Right Way

How to Create a Budget for Your Blog

Hiring an Expert to Manage Your Blog Finances

The Business of Blogging Part 10: Hire an Expert

If you’ve been following along with our Business of Blogging series, you’re now a Blogging-Accounting-Pro, or at least close to it! For the most part, when you start your blog you should be able to manage most bookkeeping and accounting tasks for yourself. However, if you’re diligent and determined to grow your blog, it will likely get to a point where you can no longer handle the demands of bookkeeping and accounting. That’s when we recommend you hire an expert.

Rather than providing a suggested dollar amount for which point to hire an expert, we recommend looking to outsource when your bookkeeping and accounting tasks are getting in the way of your creative work as a blogger. If you are spending money on your blog every week, receiving multiple streams of income, and not finding the time to match it all up, it may be time to hire an expert.

An accountant can help you manage your blog finances, stay current and in good standing with the IRS, and help you avoid any tax surprises. They can also provide you with guidance on deducting expenses properly and catch any mistakes you may have made in your bookkeeping.

Mazuma offers low-priced monthly plans for bloggers with no membership requirements. You just upload all of your blog receipts and income for your Vyde accountant and they take care of the rest. They also offer tax advice for your blog at any time, and at no additional fee. If you feel that your blog accounting and bookkeeping tasks have become unmanageable, give Vyde a call today.

 

Love this post in our Business of Blogging Series? You might also enjoy:

Separating the Blogging Myths from the Blogging Truths

Deciding on a Business Entity for your Blog

Obtaining a Tax ID Number and Proper Licenses to Run Your Blog Business

Start Making Money on Your Blog

Creating and Maintaining an Organized Bookkeeping System for Your Blog

Tracking Blog Expenses the Right Way

How to Create a Budget for Your Blog

Making Smart Investments in Your Blog Business

Paying Estimated Quarterly Taxes for Your Blog Business

Hiring an Expert to Manage Your Blog Finances

 

 

 

If your blog is continually growing, it may be time to hire an expert to take care of your accounting & bookkeeping, so that you can focus on creativity.

The Business of Blogging Part 8: Invest in Your Blogging Business

You’ve probably heard the old adage, “You have to spend money to make money.” This adage is just as true for the blogging business as any other business. If you want to turn your blogging hobby into a legitimate business, you have to invest a little bit of money to make it happen. However, that doesn’t mean you have to throw your money at every opportunity that comes along.

Here are a few smart ways to invest in your blogging business without breaking the bank:

  • Domain name. In order for your blog to be recognized as professional, you’ll have to ditch the “.blogspot” or “.wordpress” in your domain name. Sites like BlueHost offer domain hosting for as little as $3.95 a month. If you don’t want to pay a monthly fee, buy multiple years worth of hosting up front. Most hosting sites will refund you if you cancel your subscription early.
  • A professional look. Whether you choose to hire a graphic designer, web designer, or simply do it yourself, you’ll need to spend a little money to get your site looking beautiful and working properly. A logo helps brand your business and helps your following recognize your blog. This investment ranges anywhere from $50 to thousands, depending on your budget.
  • A nice camera. You don’t have to spend thousands of dollars to get a crisp photo for your blog posts. However, a nice camera that can produce high-quality photos is a smart investment for your blogging business. You can deduct your camera purchase on your taxes all in one year, or if you spent a bit more on it, you can depreciate it over time.
  • Conferences and trainings. If you read part one of our Business of Blogging series, you know not to expect to make millions of dollars overnight. There’s a huge learning curve to blogging, and you need to know what you’re doing in order to make money. Blog conferences are a great way to learn the basics and are a smart investment for your blog business.
  • Professional headshots. Other than your logo, your headshot is the representation of your blog. Most bloggers use their headshots for their social media profiles, so it’s important that you’re happy with it. You can take your own, but if you don’t know your way around a camera, it’s not a bad investment to hire a professional.
  • Business cards. Not everyone you meet who is a potential supporter of your blog will actually be through your blog. Having business cards handy will is a great way to advertise your blog and keep you at the forefront of potential sponsors’ minds. Business cards are also great to hand out to other bloggers, especially at conferences. They’re a relatively inexpensive business investment, but critical to success.
  • Editing software. Free programs such as PicMonkey are great, but many bloggers choose to invest in professional editing/designing software such as Photoshop or Illustrator. Adobe subscriptions range from $20 a` month to $50 a month, or you could even purchase one of the older CS versions on a disc for your blog business.
  • A professional accountant. Not just because you’re here reading an accounting blog! When you start making money on your blog, tracking expenses and filing taxes properly can become a huge hassle. This is especially true if you have multiple streams of income for your blog. Consider investing in the services of an accountant to help make your blog as profitable as possible.

While this is not an all-inclusive list of smart investments for your blogging business, it’s a great start for the novice blogger. The best part about all of the above investments is that they are tax-deductible and will reduce your taxable income at the end of the year.

 

Love this post in our Business of Blogging Series? You might also enjoy:

Separating the Blogging Myths from the Blogging Truths

Deciding on a Business Entity for your Blog

Obtaining a Tax ID Number and Proper Licenses to Run Your Blog Business

Start Making Money on Your Blog

Creating and Maintaining an Organized Bookkeeping System for Your Blog

Tracking Blog Expenses the Right Way

How to Create a Budget for Your Blog

Paying Estimated Quarterly Taxes for Your Blog Business

Hiring an Expert to Manage Your Blog Finances

If you want to turn your blogging hobby into a thriving blogging business, you have to invest in the right tools. Then, we can help you save on your taxes.
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Vyde is a licensed accounting firm (CPA) based in Provo, Utah, and members of the AICPA. We provide professional accounting services to businesses and individuals, with a focus on small business bookkeeping and taxes.

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