If you are an independent filmmaker in New York City, you are dealing with Federal, State, and Local taxes. Here are the things you want to remember:
Keep track of all your expenses for the year. This is extremely important and can be the difference between owing no taxes whatsoever and owing a large sum. Here is a sheet that can help organize your expense categories:
Some choose to use Mint.com, FreshBooks, QuickBooks, or Xero. For the least advanced user, I would suggest Mint or FreshBooks just to keep your expenses organized. I also highly recommend using a separate bank account for the business and to keep business expenses separate. You may want to consider hiring a low-cost bookkeeper to keep track of your expenses.
If managing expenses becomes overwhelming, hiring a low-cost bookkeeper can be a wise investment. A bookkeeper can ensure that all your financial records are accurate and up-to-date, saving you time and reducing stress. For those with less revenue, it might not justify the cost of a bookkeeper. In that case, using an Excel sheet or having your CPA handle the bank data might be sufficient.
If you choose not to hire a bookkeeper, your CPA can help manage and analyze your bank activity. While some CPAs may see this as additional work, many are adept at handling complex data and can assist with organizing your financial records effectively.
Accurate expense tracking not only helps you minimize your tax liability but also ensures compliance with tax regulations. Regularly updating your records and staying organized throughout the year will make the tax filing process much smoother.
Contact Us for Assistance With Your Taxes
For personalized guidance and assistance with your taxes, especially if you’re navigating the unique challenges of the filmmaking industry, don’t hesitate to contact a qualified CPA experienced with the specific needs of independent filmmakers.
