Artist to Mogul (Part Two): Financial Documents You Need To Have Organized
/“A good system shortens the road to the goal.”
-Orison Swett Marden
In our first article with Eric Hunt, CPA we looked at the habits and behaviors you’ll need to be prepared for your big break. One of those habits was organizing your financial documents and transactions. In Part Two, we’re diving into some of the tools you can use and the documents you need to have organized.
The two tools Hunt recommends are a Google drive/Dropbox and an online bookkeeping system.
In your google folder you’ll want have the following documents saved and available for easy access:
A completed W-9 form: this is helpful to send to new projects that are over $600
A copy of your previous year’s tax returns
Insurance
Signed contracts with clients and vendors
Google Drive or Dropbox
An ongoing list of services with pricing
1040-ES this document calculates your ongoing quarterly tax payments. You should work with you accountant to keep this document updated.
Within your bookkeeping program, this is where you can maintain your invoices and bills. On a weekly basis, run your accounts receivable and accounts payable report to see who owes you and who you owe. This will help you shift from keeping everything in your head to training yourself to look at reports to gauge the health of your growing empire. Ideally your bookkeeping program will have an app that allows you to take photos of your receipts and upload it to your program.
Some of the bookkeeping programs that I find to be most useful for my clients are:
Xero- this is an intuitive, beautifully designed program that is built for online use
Quickbooks Online- this program has all the bells and whistles. Although it’s not the most intuitive program, it is well-known by most accountants and small business owners
Freshbooks- this is great tool for invoicing and some light reporting. Keep in mind, that it does not have all of the functionality that Xero or QBO provides. However it is great for freelancing.
The key with choosing a bookkeeping program is to make a choice! A lot of business owners get stuck on picking the right one, but what’s most important to use it consistently. It helps to have guidance from a business manager who is also a tax accountant so that you set it up correctly. René Veilluex, CEO of Verite Entertainment, states, “Eric has been a huge asset to the growth of our production company. He is committed and dedicated beyond the average CFO and tax accountant to make sure that business owners have all the resources and support they need to make wise financial decisions. But beyond that … Eric cares deeply for the people and teams he works with which makes him even more invaluable! We are extremely grateful to have him on our team!!”
As your brand grows, you will also need to develop a team of professionals to support your success.
About Eric M Hunt, CPA, MST, Founder & CEO of E HUNT CPA, works with Artists and Creative Business Owners. Eric helps his clients grow their businesses beyond their wildest dreams by giving them exactly what they need most: more time to create and do what they do best. Eric has over 20 years of experience in accounting and finance for large firms dealing with mid-size corporations on complex tax and accounting matters. Eric's vast experience and years of training coupled with boutique specialization provide his clients peace of mind and practical wisdom. Practical wisdom is in his blood and he recognized this very early in life. He uses his gift to benefit his clients allowing them to stay in the flow longer, worry-free and inspired to create. When he's not crunching numbers and strategizing, you can find Eric spending time with his family, golfing, or watching a movie.
