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The Magic Cafe Forum Index » » Tricky business » » Accounting program (0 Likes) Printer Friendly Version

Paddy
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Milford OH
1571 Posts

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Someone mentioned an accounting program that is for entertainers. I checked it out and it costs only about $100 a year, which is cheaper than my quickbooks program that I have to upgrade every 2 years. Can you please repost it, I lost it before I could buy the program.

Paddy
Non Impediti Ratione Cogitationis

I reject your reality & substitute my own

http://www.Scho-Lan.com
Howie Diddot
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San Francisco & Los Angeles California
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I have a simple accounting program, I present an invoice, I receive a check, I deposit the check in my bank,

how much more complicated would it be?
Carducci
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Denver
538 Posts

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Quote:
On 2011-06-21 14:12, Howie Diddot wrote:
I have a simple accounting program, I present an invoice, I receive a check, I deposit the check in my bank,

how much more complicated would it be?


Myself, my accounting process is rather complex. I am self employed and run my own S corporation.

I present the invoice, I receive the check, I record the check, I deposit the check (sure)
I track my expenses (putting everything on a business charge card helps) and categorize them but I also have to track my mileage to each gig, depreciation of my business assets, my second bedroom that is used for storage and office space etc.

I run monthly payroll because I am required to draw a reasonable salary (otherwise I will be in trouble for tax evasion) which means I have to keep track of all the state and federal taxes, and file all the monthly and quarterly forms on time along with payments (which includes state and federal income tax, social security, unemployment ins, FICA etc)
I have to keep track of my suppliers (including copywriters, designers etc) and issue annual 1099s if necessary. I have to keep track of my "shareholder distributions" (profit that is passed through to me as capital gains)

For me, I doubt an entertainer-specific accounting program would do much good, I need a business specific program. A few hundred bucks for quickbooks (which really helps me stay on top of everything) is a HUGE value vs two hundred dollars per month (that's the ballpark quote I got from 3 bookkeepers in the area) for a bookkeeper to do all this (who would just put it in quickbooks anyway.)

If you're a sole-proprietor, all you really need is this spreadsheet http://www.trulymagic.com/magicbiz.xls. Put all your deductions (props, advertising, expenses etc) on sheet 1, log all your invoices/payments etc on sheet two, send the whole thing to your accountant at the end of the year. It's free!
Mind_Magic
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The Sunshine State USA
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Completely agree with Carducci. I do exactly the same and it works great.
I only pay $200 for accountant´s fee every year.
JordanB
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dallas, tx
646 Posts

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I'll post some more tomorrow but its late and I'm on my iPad. I just want to correct one very wrong piece of information in carducci's post. S Corp distributions are not taxed at capital gains rates. However, you do not have to pay SE tax on distributions.
Carducci
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Denver
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Appreciated. It may have been the wrong term. I seem to remember my 2010 shareholder dividends being taxed at a much lower rate than my ordinary w2 income but I could be mistaken.

I am not an accountant and do not play one on TV. My CPA helped me set up the corporation and helped me figure out the optimal ratio of w2 salary and dividends. I have a good handle on basic concepts and I know my way around quickbooks.

My point was to illustrate how business accounting can be much more complicated than simply depositing a check, not to speak as any kind of authority on the subject of how S corp dividends are taxed (I sure hope nobody read it that way!)

To simplify my point. If you're fully self employed and organized as any kind of corporate entity, you probably need something as powerful as quickbooks. If you're a sole proprietor then that free spreadsheet I put on my web server is more than enough to keep your books straight and your account can take it from there at the end of the year.
jlibby
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That spreadsheet looks like a great tool! Thanks for sharing it, Carducci.

Joe Libby
Ventriloquist and Magician
International Motivational Speaker & Entertainer; Helps you get ROCK-STAR RESULTS for your event!

For your gifts and free trainings, visit:
https://JoeLibbySeminars.com
JordanB
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dallas, tx
646 Posts

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Just to clarify, the term "S-Corporation" refers to the taxation of the business, not the legal standing of the business. You can actually have an unincorporated business and elected to be taxed as an association (corporation), and then if you meet the requirements under the law you can elect to be taxed as an S-Corp.

S corporation distributions are taxed as ordinary income, but you do not have to pay self employment tax on these distributions...they flow through to your ordinary income. You must be very careful with your salary and other items to avoid having distributions reclassified as wages/salary. There is (allegedly) a lot of tax abuse in this area and the IRS has threatened to crack down on this issue for the last few years. I would highly recommend working closely with a CPA while engaging in this type of business.

I am a big fan of the LLC and just passing it through to a Schedule C on the 1040. No quarterly payroll reports and much easier to do and the savings/advantages are fairly similar in most small businesses.

I am undecided on Quickbooks. Quickbooks has a lot of bells and whistles that I think would not be very useful to most magicians and it can be a pain to learn. If you know how to use it then it is certainly handy. I think for most intents and purposes a spreadsheet would work just fine.
Carducci
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Denver
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@Joe - My pleasure, I'm glad it could be of use!

@Jordan - A lot of good info there, thank you. I agree that quickbooks is overkill for many small businesses. Before I incorporated, that spreadsheet I linked above to was everything I needed for several years.
hugmagic
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7350 Posts

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Ik don't understand the updating of Quickbooks. I had been running Quickbooks 4 for Mac until this last year when I updated to Quickbooks Pro 2007. The only reason I did that was so I could get easier output for my tax preparer.

There is no way that I would do my own taxes with all the little quirks and such. My brother in law is an accountant and he reccomended Quickbooks to me. I was a S Corp. but I changed to a LLC because it is much easier bookkeeping.

There are many features of Quickbook I do not use,..Payroll and inventory for example. But it gives a quick easy way to link all the categories together. I can look and see where I am moneywise with just click of the key.

Richard
Richard E. Hughes, Hughes Magic Inc., 352 N. Prospect St., Ravenna, OH 44266 (330)296-4023
www.hughesmagic.com
email-hugmagic@raex.com
Write direct as I will be turning off my PM's.
Howie Diddot
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San Francisco & Los Angeles California
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My eyes hurt reading this... and I now have a headache
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