Buffista Business Talk: I wanted simple, I wanted in-and-out, I wanted easy money.
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Yeah, Section 179 can be a moving target, but it's handy if you only have to buy a couple things every few years. I couldn't use it when I first started out using stuff I already owned, so I don't fault my accountant, but I was a bit annoyed when I realized later that taking depreciation that year probably cost me.
One thing I really like about initially using the accountant is just finding a comfortable level of what and how much I was deducting. Between that and my income level (and studying govt spreadsheets to learn the incredibly high income %age that many self-employed people deduct as "expenses"), I know my audit risk is pretty low. Not that I'd have a problem in an audit, but it's obviously a nuisance I don't need.
You also have financial training, Megan, so I think your comfort level doing things on your own is much higher than mine. Even when ND was just freelancing, I relied on our accountant.
You also have financial training, Megan, so I think your comfort level doing things on your own is much higher than mine.
TBH, reading all that was kind of overwhelming. But I'm also worried about how much an accountant will cost me. Bleh. I was in a great mood earlier today, feeling like I could take on the world, but I feel very different now (unrelated to this thread - just had a weird mood swing).
Still appreciating all the input, though.
For sure, if they weren't so expensive up here, it'd be a no-brainer just for the convenience. Like with health insurance, living in SF proper always seems to add a few hundred $$ to the bill.
TBH, reading all that was kind of overwhelming.
At this point, just know two things:
1) make quarterly estimates
2) if you buy/do something that is in any way related to income coming in, keep the receipt
If you want to talk actual income figures or ACA subsidies info, feel free to call or text.
My suspicion is if you ask around you can get a recommendation for a good CPA that won't break the bank. I've got an awesome one in LA and when I started with my CPA it was $250 if my memory is correct. I'm still only at $700 for the corporate and personal taxes combined, and they are no longer simple.
Even if the cost of the CPA sounds high, a good one will find things that you'd probably miss and pay for themselves that way. Also, it can take a huge amount of stress off of you. Knowing that I've got a CPA that I trust and that can answer my silly questions takes so much stress off of my regarding taxes. I have two theater degrees and no business training. I do well at it, but there are parts that really stress me out and knowing that I have an expert is a HUGE part of being able to do it.
At this point, just know two things:
1) make quarterly estimates
2) if you buy/do something that is in any way related to income coming in, keep the receipt
This is basically what I do, and it's all good. Possibly not having an accountant will come back to bite me in the ass
t marks this post for reference when the audit hammer comes down
but I honestly don't feel too fussed about not having one. I've been freelancing for almost 3 years now, and it's been fine. The first year was the hardest because it was all unknown and weird, but with the first year of tax returns under my belt, doing my returns this year was a piece of cake. The only annoying part was remembering to do a return for the city of Cincinnati (when you work for The Man, if 2.1% is deducted from your paycheck for city taxes, you don't have to file a city return, so I was long in the habit of not doing a city return).
Looks like you live in an inexpensive area, tax-prep-wise, so that's good: [link]
And I bet that link that Dana posted probably has info re free or low-cost advice for those just starting out. As Teppy points out, the key is to get a good set up the first year and then replicate after that.
On a related note, Teppy are you interested in DE or CE work on science textbooks (college)? My main client of late does a lot of math & science (which I try to stay far away from!) and they are always looking for good editors. I imagine medical style guide knowledge would be an added plus.
We have a CPA, and he charges us $300, which is not bad for SF. He's worth it, though, just for dealing with M's permanent resident status & contracting & our home office.
