BLOGGER FINANCES

Speaker BioKelly Whalen is the author of Centsible Life (thecentsiblelife.com), a blog designed to help you live the life of your dreams on a budget.

She started her blog 4 years ago, and has since become both a well-known mom blogger and a respected voice in the personal finance realm.

Kelly is a mom to 4, and loves that she can stay at home with her kids, and still pursue her passions for writing, personal finance, and social media.

Disclaimer

This presentation and Kelly Whalen’s advice are not intended to take the place of the advice and expertise of financial advisors, certified public accountants, or lawyers.

All information shared is intended to be used as guidelines for managing your finances as a small business and blogger.

Please speak to a professional should you have questions, concerns, or need guidance.

Bookkeeping Basics

Track your income and expenses in one place.

Evaluate income versus expenses monthly.

Spend smart-consider long-term value and whether they are tax-deductible.

Know your take-home pay after expenses and taxes.

When to Set Up Business AccountsIdeally when you start your business.

Often considered once you have established earnings beyond your expenses.

Bloggers can operate as:• A ‘hobby business’ is one in which you do not earn money,

however you file taxes as a means of offsetting your loss/expenses.

• Sole Proprietors (sole owners)• Limited Liability Corporations or Limited Liability Partnerships

(provides legal protection of your personal assets)• Corporations (typically for larger businesses with employees,

profits are used to pay shareholders or for profit)• Non-Profits (corporations that use funds to achieve goals as

outlined in their articles of incorporation)

Legal

Requirements vary by state. Check your state’s website (or the state where you’ve filed) to learn more.

Tax ID Number: Apply online at http://1.usa.gov/15ezz9D

Freelance writing, consulting, etc. can be done as an LLC, Sole Proprietorship, or Corporation.

Plan for the ‘end game’ in writing. • What happens when the business closes? • Who gets the business in the event of death?

BankingAlways use a business account that is separate from personal finances.

Type of accounts to consider: • Checking• Savings• Self-Employed IRA or 401k • Business Paypal • Business Credit Card

What you need to setup accounts varies by state.

Consider: Local credit unions.

TaxesTaxes are a large portion of the expense you have a small business owner and blogger.

Taxes include self-employment tax (Social Security and Medicare), income tax, and state and local taxes.

Compensation in the form of product, cash, and gift cards are taxable.

Use wholesale pricing for product, not actual retail value.

Remember taxes when you accept compensation.

Set aside money for taxes. Typically 30-40%. Pay quarterly to the IRS.

Tax DeductionsConsider tax deductions when spending.

Fees, services, business travel, and educational materials are some examples.

Common blogger deductions include:• Domain Fees• Hosting Fees• Design, Consulting, or Freelance Services• Internet Access (% for business use)• Computer or cell phone (% for business use)• Office Space (% of space)

Estimated Taxes

If you received a refund for 2012 in most cases you do not need to pay estimated taxes.

If you have a large increases in income consider setting aside extra or paying estimated taxes anyhow.

Have a corporate job or a spouse that does? Consider adjusting withholding (getting less in that paycheck) to offset taxes that you will owe.

Find dates and information about federal tax due dates here:http://www.tax.gov/calendar/

Tax deadlines

Estimated Tax Due Dates for 2013• January 15th

• April 15th

• June 16th• September 17th

Yearly Taxes Due: April 15th

ResourcesOnline Account Management:Mint (available as an app)Your Bank’s Website (possibly available as an app)PayPal (available as an app)FreshBooks (available as an app)WaveApp

Apps:ExpensifyShoeboxed

Organization:NeatReceipt (scanner)