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MONEY MANAGEMENT
Staying on top of your voice over finances can feel like deciphering a tricky script. So let’s get real about keeping your business financially organized. Bookkeeping is like having a rock-solid system for tracking every job, invoice and expense. And the key to good bookkeeping is finding a system that works for you. Whether it’s rocking spreadsheets, using fancy accounting software, even just keeping paper or scanned receipts organized, there’s no one-size-fits-all approach. The important thing is to choose a system that keeps your finances in check without driving you bananas. Here are bookkeeping tips and definitions of concepts that will help give you a valuable insight into your voice over business – to see what’s working and what’s not, and how to keep that golden voice bringing in the bucks. Profit and Loss Statement You want to know if a project really was a win. That's where your profit and loss statement comes in. It's like a report card showing your income from the project (your rate) and how much you spent on things like revisions or travel. Basically, it tells you if you made money or not on the gig. Imagine nailing a narration but having no idea if it covered your costs. A profit and loss statement keeps you informed. Balance Sheet A balance sheet is like a snapshot of your voice over business finances at a specific time. It shows things like your equipment (your microphone and recording space), any money you owe (like on that new editing software), and your investment in the business (think demo reels and marketing materials). One client of mine never did balance sheets and had no idea how much their business actually owned or owed. Not cool when you're trying to plan for the future. Separate Accounts Imagine searching for a specific audition clip, but it's buried in a pile of scanned grocery receipts. Keeping separate business and personal accounts is like having a meticulously organized script library. You'll find everything you need in a flash, and tax season won't feel like a desperate scramble through outtakes. A client of mine mixed things up once, and tax time became a real horror show! They couldn't tell the difference between a home office deduction and a personal gym membership. It cost them a fortune to sort it all out. Invoice Like a Pro Getting paid on time is kind of essential, right? Regular invoicing is like sending out those early bird booking reminders for your voice over services. The sooner you get those invoices out, the sooner the money hits your account. I used to work with a voice actor who never sent invoices on time. They were constantly waiting on payments, which meant their business was always running on fumes. Don't let that be you. Track Every Penny Every project, every studio session, every booth fee adds up. Keeping detailed records of your expenses is like having a sound editor meticulously cleaning up your audio. It helps you see the true financial picture of your voice over business. Tax season can actually be a breeze when you have everything documented neatly. No more panicking about missing deductions or spending hours hunting down receipts at the last minute. Mileage Matters Let's face it, gas isn't cheap, but those trips to the studio are totally deductible. Tracking your mileage is like keeping that extra gas money in your pocket. There are mileage tracking apps out there, or you can just keep a simple log. Just remember to separate business trips from personal errands – you wouldn't want to accidentally deduct your weekend road trip. Spread the Tax Love Remember that April 14th dread when a giant tax bill lands in your lap? Ugh. Paying estimated taxes quarterly is like smoothing out those audition jitters. Spread those payments throughout the year, and tax season becomes a victory lap, not a panic attack. A client of mine once ignored them, and by April, they were sweating bullets trying to come up with a huge chunk of change. Totally avoidable with a little planning. Financial Fitness Check Ever get that annual checkup at the doctor's? Regular financial reports are like those checkups, but for your voice over business. They show you exactly how healthy your finances are:
One client used to avoid these reports, fearing bad news. But once they embraced them, they discovered areas to save money and boost profits. Boom! Vanquish the Receipt Monster We've all been there - pockets overflowing with crumpled receipts from booth rentals, software subscriptions, who knows what! Creating a system to manage receipts is like having a super-powered organization sidekick. Everything gets neatly categorized and easily accessible, saving you future headaches. A freelancer I knew used to lose track of receipts all the time, and come tax season, they couldn't claim all their deductions. A simple system could have saved them a ton of cash. Time Management Mastery Ever feel like there just aren't enough hours to nail that perfect demo or record a killer audiobook? Time tracking software is like a magic mirror revealing exactly where your time goes. Spending too much time on emails or editing? Certain projects taking longer than expected? Track your time and become a time management whiz. Free up valuable time to focus on what matters most - delivering stellar voice overs. YOUR VOICE: ONE PIECE OF THE PUZZLE By following these tips you'll be well on your way to becoming perpetually organized. Remember, a clear financial picture lets you make smart decisions for your voice over business and keeps you delivering award-winning performances... financially speaking! But: Are numbers not your thing? Are you feeling overwhelmed? There’s no shame in that. Outsourcing to a bookkeeping expert is like calling in a voice over buddy for backup. They'll handle the nitty-gritty details, freeing you up to focus on what you do best - running your incredible voice over business. Now go forth and conquer the financial world, one perfectly delivered line at a time! Web: www.RoseKnowsBookkeeping.com |
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By Rose Lamoureux
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