Bookkeeping Tips to Make Your Life a Little Easier

For many writers, bookkeeping can be a drudge. But there are ways to streamline it and make it easy enough that it won’t dominate your life.

No matter which of the three bookkeeping systems you choose—simple checkbook, single-entry journal, or the more complicated cash-disbursements journal—you’ll also need to have an easy way of filing  backup receipts. You should have something—receipt, invoice, canceled check or petty cash ticket—for every expense. Make sure before filing these receipts that they indicate all of the important information—date and amount paid, to whom paid, check number or cash payment. Keep these receipts for business expenses filed separately from any personal expenses. You can use one of those accordion files divided into 12 compartments—one for each month—or 12 envelopes or a box in which you store receipts in monthly bundles. Whichever way you choose, be consistent.

The first step in recording your expense receipts is a program like Expense Director from Iambic.com. This program allows you to record your expenses on your smartphone or personal assistant. Then you can sync the device you’re using to your computer to save and store your expense notations. After you record your expense amounts, place the receipts for that month in a box. Make sure to put a check mark on each receipt after you record it. At the end of the month, bundle that month’s receipts for storage.

A program like Expense Director allows you to create spreadsheets of monthly expenses easily and quickly. You can also sort your expenses so that you have all like expenses together. If you don’t have a spreadsheet program, get one. It comes in handy for lots of other records, too.

All funds received or disbursed from your freelancing business should pass through your business checkbook. Your monthly bank statement should be balanced against your receipts/disbursements spreadsheets, as well as verifying your checkbook balance.

Record all cash receipts in the proper column by category. If you're working part-time, you can keep the data in the same spreadsheet, but keep the receipts in a separate column. If you regularly receive rent or other such income from another source, separate those receipts also.

Record gross receipts and net receipts, if you have both, at the same time for more ease in figuring your taxes. Be accurate when you record figures across the page. They need to balance both horizontally and vertically. You’ll want to balance each page monthly, then record the balances on the balance spreadsheet.

You’ll find it handy to have a calculator with a printout tape. It’s also helpful as proof of balances during any tax audit. As you balance each page of your spreadsheet, you can file the tape with your backup material—receipts, invoices, petty cash tickets, etc.

If you’re following the above procedures, you’ll be able to check your accounts receivables each week which will let you know if you have any slow payers. You’ll also be able to check you accounts payables, your bills, to see if you can pay ahead to take advantage of any discounts.

And every month, you’ll need to post your income and expenses and balance your books. You’ll also need to prepare a profit and loss statement, balance your business checking account, balance and file any petty-cash receipts, and do anything to prepare for taxes. And one last thing: You’ll need to rebill any slow payers. Doing all of this should keep you on financial track.

Getting Paid What’s Due

It’s hard enough working as a freelancer, but add to that the frustration of not getting paid on time or not at all and it can become a nightmare. For most writers, bill collecting is a time-consuming and distracting endeavor. But in today’s economy it has become a fact of life. Just as the people you owe come after you if you haven’t paid your bills, so should you go after those who owe you.

Often you’ll see the signs early on. An editor fights with you for a few more dollars payment. Or perhaps he or she doesn’t let you know up front that the publication will be paying up to two months after publication. If you notice clues like this, it’s better to back away from this market because you’ll surely have problems down the line. But many writers hesitate to do that or to hassle their editors about payment for fear of losing the work.

Timely billing is the first step toward timely payment. Send an invoice with every piece you produce. Make sure that you put your Social Security number on it. Sure, everyone is telling you not to put your Social Security number on anything, but this is a bill and today, businesses use that number to identify you.

Also, make sure you state your terms of payment, unless otherwise arranged. It’s a good idea to ask an editor when the publication normally pays writers before you begin working for it. State on your invoice exactly how you want the check made out—John Doe or John Doe Communications, etc.

If you’ve incurred any expenses that you’ve previously discussed with the editor, include them on the invoice. Some editors ask that you bill them separately for expenses. Enclose copies of receipts if your editor requires them. If you’re sending your invoice by Email, scan your receipts and send image files of them. If sending by regular mail, send paper copies. If you invoice correctly and keep good records, you’ll find you can prevent problems from arising. Remember to keep copies of all your invoices. Mark those paid when you’re paid and keep an eye on those not paid as yet.

If you haven’t received payment when you expected it from an editor, send a pleasant Email reminder. Jog the editor's memory if a few weeks have gone by without payment. Editors get busy and many are  overworked and understaffed. Your invoice may have gotten misplaced. If you receive no answer within 10 days after this reminder, however, the editor may be ignoring you.

A firmer letter, sent by regular mail, should remind the editor that you met your obligations and you request that he meet his or hers. If you receive no response from this, then call the editor on the phone to find out what’s going on.

If none of these tactics work, then you can resort to charging interest on unpaid accounts over 30, 60, or 90 days, just as you’re charged if you're delinquent in paying your bills. While you may not receive the additional amounts, you'll get a businesslike message across.

If all else fails, you can always take the publication to small claims court. Depending on how much you’re owed, this can be more of a hassle for you than just admitting defeat and claiming the unpaid amount on your income tax. If an editor contacts you and tells you that the publication is having problems, back off a bit, but not too much. After all, you deserve to be paid for what you have done.

Generally, slow-paying markets don’t pay expenses. If you’re having problems collecting payment for the writing you’ve done for them, chances are they’re too strapped or cheap to pay for expenses.

Bluffing It

Bluffing isn’t only for poker players. As a freelance writer, you may find that every once in a while it will come in handy—but be prepared to fast-talk yourself out of a jam should you get caught. Generally speaking, bluffing is making someone think one thing when another or even the opposite is true.

As you start out in your writing career, you don’t have much going for you. You most likely haven’t published much or perhaps nothing at all. And trying to get something published seems to be an uphill battle. It’s a bit like trying to get a loan from your bank without any credit. And while you can’t bluff your way out of not having credit, you can stretch the truth somewhat about publishing.

For instance, let’s say you’ve had an opinion piece published in your local paper—if it still exists. You can list this accomplishment when querying an editor, just don’t say the piece was for the Op-Ed Page. Instead say you had an article published in such and such a paper. It will be difficult for an editor to track it down. But the credit still looks good and isn’t a lie. If you can get short pieces of 300 words or so published in print or on the Internet, that will help to bolster your professional image, especially if the idea you’re pitching is a really good one. What you’ve published and where you’ve published it won’t matter much.

The second bluff you can easily do is to make yourself look successful. Just as dressing for success can make a business career, so dressing your work can help start your writing career. Too many beginning writers think it’s just about the writing. There’s a lot more to it than that.

Start by designing a professional letterhead and perhaps even a simple, but professional looking Web page. Although you’ll most likely be conducting most of your correspondence electronically, you should make a good impression, nonetheless. Beyond correspondence, design your own invoice or get a free pre-formatted one from the Internet. Nothing says you’re professional more than a businesslike invoice.

Along with the above, its imperative to format your writing correctly. The writing biz has standards, and you should learn and follow them. Even if your writing isn’t that great, editors will more likely read it if it’s a good idea formatted as professionally as possible.

A third bluff that may come in handy sometime in your career, but especially in the beginning, is obtaining an interview from a prominent person or celebrity when you’re not writing for the top markets. In this case, it’s important to be honest with the person or their publicist. Don’t lie, but, on the other hand, don’t’ tell them everything.

For example, find out as much about the person as possible. Flattery will get you everywhere in this case. Make an appointment and have your questions prepared ahead of time. In fact, it’s a good idea to send them to the person or publicist in advance of the interview. As in the case above where you list credits that lead someone to believe they’re more than they are, you’ll need to do the same.  Or you can bluff your way into seeing the person.

When George P. Chapman of the Westerly Rhode Island Sun wanted to get an exclusive from Albert Einstein, he pulled a trick that got him past the impatient crew of big-time reporters waiting outside, straight into the genius's living room.

Though he was a reporter, he was also a telephone repairman. Wearing his lineman's boots and work clothes, carrying his tools, Chapman strolled casually to the door of Einstein's summer cottage. "I've come to look over your phone," he said.

The maid let him in, saying, "Good. The professor has been trying to get Washington, and the dial is slow." Chapman produced a can of oil and fixed the recalcitrant machine. Then he turned to Einstein and announced he was a reporter for the local paper. Could he have a statement? He got his scoop with a smile.

Bluffing has its place in freelance, but remember not to overdo it. Once you’ve established yourself, use your own knowledge and credits to build your career.

Keeping Your Supply Closet Stocked

A whole lot has changed for me as a freelance writer in the past two decades, at least as far as keeping my supply closet stocked.  It used to be that when I needed office supplies, my only option was a mom and pop office supply store that sold most of their items at relatively high prices. Today, that’s all changed.

When I first started freelancing in the mid-1980s, I did all of my work on a typewriter. Then I had to worry about keeping fresh ribbons and whiteout handy, along with standard copy paper. In those days, I didn’t have print cartridges to deal with or other accessories of the Computer Age.

Besides the standard office supplies—paper clips, rubber bands, stapler, labels, postage stamps, pens, pencils, calculators, index cards, and file folders—the Computer Age has its own set of office supplies—printing paper, printer cartridges, software, CDs, DVDs, thumb drives, etc.  So how do I keep all of these items in supply without going over my budget? The answer is easy, diversify.

The most important supplies, at least at the beginning, was my letterhead and related stationery with my logo or business address on it. Add to this my invoices—I can’t get paid without them. All of these items carry my business image to the larger business community, so it was imperative that they look professional. I designed my first letterhead and business cards myself using a scissors and glue to cut and paste the designs. I had to take these to a local printer who charged me dearly for them. In fact, in those days I also had to go to his place to make copies.

Today, I design, produce, and print my letterhead and stationery, as I need it, using my computer and printer. I get spiffy business cards at a substantial discount from VistaPrint.com. I can get  250 of them for free, plus the cost of shipping, as long as I use one of their designs. I get compliments about them all the time. To make sure everything goes together, I design my letterhead to go with the existing template cards. I can also get the cards custom-made by VistaPrint for a bit more.

I do the same for my invoices. Originally, I purchased a pad of blank ones at the stationery store. Then I designed my own when I began sending them all by E-mail. I create my invoice in my word processor, then copy and paste it below my signature in the E-mail message. I add a note within the invoice for the person receiving it to print it and send it along to their accounts receivable department.

When I began freelancing, it was important to have a business phone and be listed in the Yellow Pages. Do they even have them anymore? (I jest.) Today, my regular phone works just fine, but along with it I have my Internet connection, which just got boosted to “super zippy” speed through Verizon FIOS. Add to these connections to the outside world is my cell phone. No, not the pay-by-the-month, all-inclusive plan, but just the plain pre-pay variety through Tracfone. I find this more than adequately fulfills my needs.


So what about the rest of my office supplies? Sure, I can opt to go to Staples, Office Max, or Office Depot to buy what I need, but I find that at those places, I have to buy in larger quantities. I learned as the years went by that I don’t need 10,000 paper clips, a 1,000 rubber bands, and a box of 10 reams of paper. The little money I might save buying in such quantities is offset by my not using very many of them at one time. I also keep my eye pealed for sales on these items from local drug and discount stores, especially in August and September before the start of school.

The item that costs the most is print cartridges. Instead of paying nearly $30 for one cartridge, I buy refurbished ones for my HP printer from LDProducts.com. I can buy three cartridges from them for what I have to pay for one at Staples. Before LDProducts, I purchased cartridges from a similar company that I discovered at a local computer show. If I’m in a pinch, I can always take an empty HP cartridge to Walgreens to have it refilled for a few dollars more than the price of one from LD. For this reason, I make sure I have an extra HP cartridge or two lying around my office.

If I do want to purchase office supplies in bulk, there are plenty of places online that offer larger amounts at reasonable prices, often with free shipping for orders of $50 or more.

Postage used to take up a large chunk of my budget. Today, I do just about all my correspondence by E-mail, including sending complete book manuscripts to my publishers. So now I buy a book of 20 stamps at a time, enough to last me for a month or two. Soon I may be paying most of my bills online, saving me even more on postage. When I do purchase postage of any kind, I always ask for a receipt.

When I’m traveling for research or on assignment, I carry some basic supplies with me. I use a larger ZipLoc bag to hold a few sheets of printed letterhead and envelopes, some business cards, stamps, 3x5 cards, paper clips, rubber bands, a couple of extra ballpoint pens (black, red, and blue), a small block of StickyNotes, a roll of Magic tape, a small pair of scissors, and a miniature stapler. I also stick a few empty manila file folders into my computer bag. I used to have to carry tapes and batteries for my tape recorder, but today now I use a digital recorder which requires neither.

The Money Migraine

Collecting the money owed to you can be frustrating and time consuming. In this business, we call it a “money migraine.” Some markets pay on time all the time, other are just the opposite. I got paid for my first article exactly one year after I sent it to a magazine. At the time, I was so excited about being published in a national magazine that it didn’t dawn on me that if I wrote full time that I would starve if I had to wait that long to be paid.

The better markets out there do pay on time and do respect writers. But some of the middle markets and, especially those at the bottom of the ladder, drag their feet. One magazine even offered me free advertising for the $1,500 they owed me for several articles. Now why would I advertise in their magazine?

The first step in timely payment is to find out when you’re supposed to be paid. Don’t hesitate to ask a publishers when they pay writers. Some pay on acceptance, some on publication, and some after publication. Knowing when you should expect payment will help you know if you should take further steps.

If payment time passes, send a second invoice, accompanied by a friendly reminder. Hopefully, the publisher may have just forgotten. Editors are busy and sometimes overworked. Or perhaps your invoice got misplaced. If you receive no answer or money after 10 days, it’s most likely that you’re being ignored.

Send another letter, reminding the editor that you met your obligations and insist that the publisher meet his or hers. If not answer again, it’s time for you to call. But often this has no effect.

What should you do now? If all else fails, you can take a publisher to court-–small claims court, that is. The only problem with this is that you have to do that in the county or town in which they’re located. For a small fee, you can file a claim or have someone locally file one for you. There’s a good chance you’ll get the money owed you, but you’ll have lost that market.

In my experience, nearly all publishers eventually do send payment–albeit very late. Continuing to work with a slow-paying publisher is a decision you’ll have to make. Sometimes, it’s a one-time event, but there are publishers who operate by the seat of their pants. You’ll have to decide if it’s worth continuing to work with that publisher or should you put your energies into finding a new one.

Invoices–The Key to Getting Paid

Many writers, especially beginners, live in an idealized ivory-tower world where the only thing that’s important is their writing. That’s fine if they’re independently wealthy. Unfortunately, few are.  Most work at 9-5 jobs and write either in their off hours or when the muse strikes them. They don’t particularly have to worry about whether their writing brings in any money.

If you want to make money at writing, you need to start using a staple of the business world–the invoice.

To get paid in business–and yes, writing is a business, especially if you do it full-time–you need to bill for your time. With every piece of writing you send to an editor, you need to include an invoice. This can be as simple as a sheet of paper with your name and address at the top, followed by the name of publication and, below that, the title of your piece and the amount due for it, or it can be an elaborate affair with a category code, invoice number, date, social security number, etc.

If you don’t want to design and print up your own invoice, then you can go to any office supply store and buy a pad of them, filling them in yourself. It’s infinitely more business-like to create your own. You can do this as a separate file to be sent with your writing file by E-mail, or of a simpler design that you can tack on at the end of the composition file. The former works better because the editor can print it out and send it on to the accounts receivable department of the publication. Remember, editors don’t pay you; someone in the accounting department does.

You should also always include an invoice, even if you aren’t being paid money for your work. While you should try not to write for free, you need to make the person on the other end know what your time is worth if they had paid for it. In this case, include a reasonable amount, and then mark the invoice “PAID.” Also, don’t forget to print a copy of every invoice you send out for yourself, so that you’ll have a record of all your sales for the year.

If you work on different types of writing–articles, public relations, fiction, etc.–you should consider including a category code on your invoice. This makes it easier for you to tally up the totals for each category at the end of the year. While you don’t need these totals for taxes, they help you see which categories are making more or less money, so you can plan for the next year.

While an invoice may seem an insignificant thing in your writing life, it’s more important than you  may realize.