Q: What percentage of my work time do you recommend I spend on accounting?
A: It depends. Here’s a few basic things to keep in mind when you’re setting aside time for bookkeeping and taxes.
1.Do you have a system in place? Right now, take stock in the methods you have for financial record keeping. Do you have a place for receipts? A spreadsheet to track expenses? Have you found answers to any burning questions like whether or not you can deduct an expense or have to report product you received from a company? And most importantly, are these methods organized and up to date? It doesn’t count if you have a system that you don’t use or that isn’t efficient.
If you’re up to your knees in unrecorded receipts or you dread the idea of sitting down and entering numbers on a spreadsheet – it may be time to consider hiring an accountant to provide bookkeeping and tax services. Peace of mind is worth the cost.
2. Hiring an expert may actually cost you less than doing it yourself. It seems like a huge up front cost to hire an accountant, but what if it provided you with more time to work? You might actually be able to make more money if you delegate it to someone who knows the ins and outs. And the icing on the cake will be when that expert gets you a larger return than if you had done it yourself.
3. If you have a system in place, but still wonder if you’re spending too much time with the books and not enough time building your blog or business, you might also want to consider hiring an expert. Check out our plans & prices as well as a comparison chart of Mazuma vs. tax accounting software (scroll down to the bottom of the page). You’ll be surprised at how much expert help you can get for your dollar.
Check out our other Tax & Accounting FAQs for bloggers here:
What is the biggest tax mistake bloggers make?
How do I figure out if I deduct all or part of my new computer?
If I have an LLC, must I pay for all my business expenses with my business account?
Can I count digital products I give away for review as expenses?
What can I deduct for this blog conference? Are clothes deductible?
What is the best way to keep track of the little expenses that add up over the year?
What potential business expenses might I have as a blogger?
What do you suggest bloggers do when given free stuff as compensation?
What percentage of my work time do you recommend I spend on accounting?