WEBVTT - BA Q&A: What Does A Bookkeeper Do? ft. Maya 0:00:06.320 --> 0:00:10.760 It's time for the va qa, the v a qa, 0:00:10.800 --> 0:00:13.840 which say the va qa with manday with b a 0:00:14.120 --> 0:00:17.840 qa and nobody else. It's just me this week, y'all 0:00:17.920 --> 0:00:21.120 ride in solo. My girl Tiffany is on VAK and 0:00:21.160 --> 0:00:24.200 we love that for her. I am holding it down 0:00:24.640 --> 0:00:26.840 this week on the baq and A and I actually 0:00:26.880 --> 0:00:30.560 sang that song without burning with embarrassment, which I usually 0:00:30.600 --> 0:00:34.559 do because Tiffany does it better. But I am very excited. 0:00:34.600 --> 0:00:38.040 We've got a live member of the ba fan in 0:00:38.159 --> 0:00:41.479 the hot seat in the studio today with me to 0:00:41.520 --> 0:00:45.720 ask a question that honestly, I myself have struggled with 0:00:46.240 --> 0:00:49.160 as a new entrepreneur. And so for any of y'all 0:00:49.200 --> 0:00:51.760 who are nine to five, you have your nine to five, 0:00:51.800 --> 0:00:54.120 but you have some side hustle income on the side, 0:00:54.600 --> 0:00:58.080 which is fantastic and we support that, and I think 0:00:58.200 --> 0:01:01.240 having additional streams of income is all always great. But 0:01:01.280 --> 0:01:03.040 it's kind of like what they say is true, right, 0:01:03.120 --> 0:01:07.240 more money, more problems. And it is tax season. So 0:01:07.360 --> 0:01:11.080 our listener today, Maya is here to ask a question 0:01:11.200 --> 0:01:14.920 about how she can take advantage of maybe some deductions 0:01:15.480 --> 0:01:18.840 or just how to approach her taxes for twenty twenty two. 0:01:19.240 --> 0:01:21.320 All right, so let's take a listen to Maya's question 0:01:21.480 --> 0:01:22.480 and then we'll get coming. 0:01:23.000 --> 0:01:25.080 So I have a nine to five, but I also 0:01:26.240 --> 0:01:28.920 have work outside of my nine to five. 0:01:29.000 --> 0:01:30.680 I guess you could call it a side hustle or 0:01:30.760 --> 0:01:31.440 side hustles. 0:01:31.440 --> 0:01:33.960 But I always struggle when it comes to tax time, 0:01:34.720 --> 0:01:37.680 and I feel like I'm not necessarily either writing off 0:01:37.720 --> 0:01:40.920 everything that I could be writing off or reducing my 0:01:41.040 --> 0:01:44.240 tax burden significantly so that it makes sense for me 0:01:44.280 --> 0:01:48.280 to be earning extra income. So one of my questions 0:01:48.480 --> 0:01:50.480 is how do you reduce your tax burden when you 0:01:50.560 --> 0:01:53.840 do ten ninety nine work. I still owe the Feds 0:01:53.840 --> 0:01:55.720 from last year, and I'm pretty sure that I'm not 0:01:55.760 --> 0:01:57.560 going to get anything back this year when I do 0:01:57.600 --> 0:01:58.240 my taxes. 0:01:58.520 --> 0:02:03.520 All right, Maya, Welcome to Brown Ambition. Hi, thank you, 0:02:03.920 --> 0:02:06.640 Hey Maya. I was giving her a little bit of 0:02:06.760 --> 0:02:08.400 I was just teasing a little because you have the 0:02:08.440 --> 0:02:14.200 most fabulous last name, lady, Lady Maya Pendleton of the 0:02:14.320 --> 0:02:24.240 d C Washington Pendletons. It's giving, Bridgerton, It's giving. Did 0:02:24.280 --> 0:02:25.160 you watch Bridgerton? 0:02:25.160 --> 0:02:25.919 Am I high? 0:02:26.440 --> 0:02:27.280 But I know what it is? 0:02:28.560 --> 0:02:33.080 Dang, Maya, I can't get into the like, I don't know. 0:02:34.040 --> 0:02:35.919 So if I said I burned for you, you would 0:02:35.960 --> 0:02:37.040 have no idea what that meant. 0:02:37.040 --> 0:02:39.840 Okay, that's fine, Sorry, that's fine. 0:02:40.280 --> 0:02:43.640 Hopefully you're not here to talk about my Netflix dramas 0:02:43.639 --> 0:02:45.720 and rom comms anyway. You were here to talk about 0:02:45.919 --> 0:02:48.040 your side hustle. So tell me a little bit about 0:02:48.080 --> 0:02:50.760 what you do on the side and how long you've 0:02:50.760 --> 0:02:51.480 been doing that for. 0:02:52.120 --> 0:02:55.040 So, I right on the side, I do research on 0:02:55.080 --> 0:02:57.720 the side. I've been doing that for about maybe like 0:02:57.760 --> 0:03:01.480 three years in additions to my full time job. I 0:03:01.520 --> 0:03:04.320 really like the work, but it makes my tax is 0:03:04.320 --> 0:03:05.520 really difficult every. 0:03:05.360 --> 0:03:10.519 Year every year. So you're a freelance writer. Basically, yes, nice, 0:03:10.600 --> 0:03:12.120 I love that. What kind of writing do you do? 0:03:12.760 --> 0:03:18.800 I write about like racial justice, about abolition, about prison. 0:03:18.520 --> 0:03:23.720 Infusing Okay, so really uplifting stuff. Yeah, very brings a lot, 0:03:24.080 --> 0:03:27.519 no but important stuff. No, that's fantastic. And as a 0:03:27.960 --> 0:03:31.280 journalist myself and as someone who has written for definitely 0:03:31.280 --> 0:03:34.760 I write freelance now. I it was like this money 0:03:34.800 --> 0:03:37.320 is cute during the year, but then around January February 0:03:37.360 --> 0:03:39.280 you get those damn ten ninety nine's into the middle 0:03:41.240 --> 0:03:43.720 and it's like, wait, I was excited to earn this 0:03:43.800 --> 0:03:46.440 money back in October in June, but now I'm like, 0:03:46.680 --> 0:03:49.120 when's this paper? And I just have this stack of like, 0:03:49.600 --> 0:03:51.560 you know, because every time you earn I think it's 0:03:51.600 --> 0:03:54.960 what is it, like more than six hundred dollars from Yeah, 0:03:55.040 --> 0:03:59.040 then you get you your your the contract or the 0:03:59.080 --> 0:04:01.839 company that's paid you will deliver you a ten ninety nine. 0:04:02.880 --> 0:04:05.120 And it's not like it's the ten ninety nine themselves 0:04:05.200 --> 0:04:09.120 is not stressful. It's just like, okay, so how do I, 0:04:09.200 --> 0:04:11.800 you know, put these include these on my income for 0:04:12.040 --> 0:04:15.280 the tax year? And then I know your question is 0:04:15.320 --> 0:04:18.920 like how do I make deductions? Like how can I 0:04:19.040 --> 0:04:22.680 lessen my tax burdens because I do have this extra income, 0:04:23.960 --> 0:04:27.960 So let's start there. Do you actually have a tax 0:04:28.000 --> 0:04:30.080 preparer or an accountant who you work with? 0:04:30.279 --> 0:04:32.080 No? And that's the crazy part. So I just do 0:04:32.200 --> 0:04:34.479 it all myself. And I know that's right. I know. 0:04:34.720 --> 0:04:36.320 I know. That's why I asked, because I was. 0:04:36.240 --> 0:04:38.039 Like, this is you know, why, So tell me why, 0:04:38.080 --> 0:04:40.400 because I I think no judgment. 0:04:40.520 --> 0:04:43.160 No. Before I was used to just you know, nine 0:04:43.160 --> 0:04:45.600 to five texts are very straightforward, like put in the 0:04:45.680 --> 0:04:48.040 number of the beautiful, right, you get the numbers back, 0:04:48.080 --> 0:04:50.520 it's fine. So I have been used to doing it 0:04:50.560 --> 0:04:52.800 that way, so I think like the first few years 0:04:52.880 --> 0:04:54.760 or two years is to be like my third year 0:04:54.760 --> 0:04:57.040 of doing it. This is the first year I've been like, no, 0:04:57.160 --> 0:05:00.200 I gotta get a handle on this. I was just like, well, 0:05:00.200 --> 0:05:03.800 it can't be but so hard. But then you owe 0:05:03.839 --> 0:05:05.520 a bunch of taxes, so it is hard. 0:05:06.720 --> 0:05:09.200 Yeah. I know. My husband's like, remember the days we 0:05:09.279 --> 0:05:11.880 used to get tax refunds, and I'm like, babe, wish 0:05:12.000 --> 0:05:14.960 if you look at it. But that's almost like looking 0:05:15.000 --> 0:05:17.520 at it in a positive light. I think takes away 0:05:17.560 --> 0:05:19.920 the fact that tax refunds aren't that awesome. I mean, 0:05:19.960 --> 0:05:22.359 they're great because it's like a little windfall, but it 0:05:22.400 --> 0:05:24.880 also means that you've been giving more money than you 0:05:24.920 --> 0:05:29.359 should have to the government all year long. Sure I will, okay, 0:05:29.400 --> 0:05:32.280 so you don't have a tax professionally working with Now 0:05:32.279 --> 0:05:34.560 we're going to get to that. I'm wondering, have you 0:05:34.600 --> 0:05:37.599 been setting aside money throughout the year from your earnings 0:05:37.920 --> 0:05:41.040 now that we try to do okay. 0:05:40.920 --> 0:05:43.520 God, we don't calculate that very well. Because listen, I 0:05:43.520 --> 0:05:45.520 got the tax forms back, and I was like, there's 0:05:45.520 --> 0:05:47.880 no way I made that much and I didn't, right, 0:05:50.120 --> 0:05:52.200 But I try to, you know, at least do like 0:05:52.240 --> 0:05:55.240 twenty or thirty every time I get paid put that 0:05:55.279 --> 0:05:56.640 in a savings account. 0:05:57.640 --> 0:06:00.760 Okay, yeah, I And sometimes it's like when you get 0:06:00.760 --> 0:06:03.400 these what I miss the most about being a W 0:06:03.520 --> 0:06:05.839 two worker is I used to just go to my 0:06:05.920 --> 0:06:09.520 payroll website and be like, withhold this, automate that, and 0:06:09.520 --> 0:06:11.400 then I wouldn't have to think about it. But when 0:06:11.440 --> 0:06:14.479 you're getting paid, you get checks and deposits, you know, 0:06:14.640 --> 0:06:17.680 randomly throughout the year, you have to remember, okay, go 0:06:17.839 --> 0:06:21.240 in and transfer twenty five or thirty percent into savings 0:06:21.279 --> 0:06:24.720 and then sometimes that happens, you know, too late or 0:06:24.960 --> 0:06:28.640 after you spent it, so I get that one hundred 0:06:28.640 --> 0:06:32.440 percent and you hear often like one of the benefits 0:06:32.440 --> 0:06:35.280 of having a side business is that you do have 0:06:35.520 --> 0:06:39.919 the potential for deductions, and you know, people make it 0:06:39.960 --> 0:06:43.279 seem so easy, like you know, there's this idea that 0:06:43.320 --> 0:06:45.520 you can like buy a whole car and have that deducted, 0:06:45.600 --> 0:06:48.440 and like you can deduct can you deduct your mortgage 0:06:48.480 --> 0:06:50.239 and like all this stuff, and it's like a little 0:06:50.279 --> 0:06:53.400 too too much. So to bring us back down to earth, 0:06:53.680 --> 0:06:56.400 the first thing I'll say is it's important to understand 0:06:56.480 --> 0:07:01.279 like what actually can be used to like reduce your 0:07:01.360 --> 0:07:04.400 taxable income as a business owner. So you're a writer, 0:07:04.839 --> 0:07:07.839 for example, I would I wonder like, do you use 0:07:07.839 --> 0:07:12.720 any subscriptions for your business, like writing software, transcription software, 0:07:14.040 --> 0:07:17.160 any business services that you rely on throughout the year 0:07:17.360 --> 0:07:18.320 for your business? 0:07:18.680 --> 0:07:21.280 I don't. I just use the basics of like Wi 0:07:21.280 --> 0:07:22.280 Fi my laptop. 0:07:23.800 --> 0:07:27.440 Wait, but a Wi Fi? So like Wi Fi there's 0:07:27.520 --> 0:07:30.440 Wi Fi and you work from home when you do 0:07:30.440 --> 0:07:30.840 the writing? 0:07:30.880 --> 0:07:32.000 Is that right from home? 0:07:32.880 --> 0:07:35.200 Okay? Oh, this is one question I should have asked you. 0:07:35.240 --> 0:07:37.120 And by the way, I am not a tax professional. 0:07:37.160 --> 0:07:39.920 I'm just you know your financial bff in your head. 0:07:41.200 --> 0:07:44.600 So my first piece of advice should have been like, babes, 0:07:44.800 --> 0:07:46.480 you need to level up, find you a We're going 0:07:46.560 --> 0:07:48.480 to find you a CPA. You got to do, yes. 0:07:48.680 --> 0:07:51.960 But now I'm asking because you know these home expenses 0:07:52.000 --> 0:07:54.320 they can be a part of a deduction. Like for example, 0:07:54.360 --> 0:07:57.880 I'm here in my zenden. This is my basement essentially, 0:07:58.200 --> 0:08:01.840 and so there's like a calculation that my accountant helps 0:08:01.920 --> 0:08:04.400 me with where it's like, how much square footage is 0:08:04.440 --> 0:08:07.040 your house? How much of that square footage do you 0:08:07.200 --> 0:08:10.600 use for your business? And then like, let's say it's 0:08:10.960 --> 0:08:15.040 twenty percent. Then like and this is a rudimentary calculation. 0:08:15.160 --> 0:08:18.120 This is why we need these tax nerds to help us. Yes, 0:08:18.440 --> 0:08:20.960 but like twenty percent of my mortgage or twenty percent 0:08:21.000 --> 0:08:24.120 of my my WiFi or my you know, my cell 0:08:24.160 --> 0:08:27.640 phone expenses maybe can be deducted from my income because 0:08:27.760 --> 0:08:30.920 I work from home. In that way, you know, if 0:08:30.920 --> 0:08:33.160 you were traveling, which it doesn't think I don't think 0:08:33.200 --> 0:08:36.599 you are, but travel expenses, Oh, sometimes, okay. 0:08:36.360 --> 0:08:39.040 I will go to a conference or like an in 0:08:39.080 --> 0:08:40.760 person meaning yes. 0:08:41.440 --> 0:08:43.920 Yeah, conferences. So I went to a big conference in 0:08:43.960 --> 0:08:47.200 twenty twenty two, and I can you can deduct you 0:08:47.240 --> 0:08:49.800 can definitely write off like your expenses for the conference, 0:08:49.800 --> 0:08:55.000 the travel, the food, the actual cost of like the admission. Also, 0:08:55.440 --> 0:08:57.439 one of the tips my accountant gave me for twenty 0:08:57.480 --> 0:09:00.719 twenty two was go ahead and purchase any conferences you 0:09:00.760 --> 0:09:03.120 want to go to in the next year. Purchase them 0:09:03.120 --> 0:09:06.440 in twenty twenty two so that it can work. It 0:09:06.440 --> 0:09:11.400 can go towards your your write offs for twenty twenty two. Now. 0:09:11.400 --> 0:09:14.200 I know it's a little late for that tip right now, 0:09:14.240 --> 0:09:17.000 but I'm just saying for future reference, if you know 0:09:17.040 --> 0:09:19.640 you're going to do something business wise, like go ahead 0:09:19.679 --> 0:09:22.600 and stack those expenses so that they're hitting you in 0:09:22.640 --> 0:09:24.560 the current tax year so that they can you know, 0:09:24.720 --> 0:09:29.840 go toward your like reducing your income. Now, office supplies. 0:09:29.880 --> 0:09:32.960 Do you have like printer, printer, paper stuff like that? 0:09:33.280 --> 0:09:36.479 It this sounds crazy, I really don't. I got pins 0:09:36.480 --> 0:09:37.559 in the laptop. 0:09:38.840 --> 0:09:42.320 That stuff. Like if there's listen, if you have like 0:09:42.840 --> 0:09:45.120 even your computer, I know that maybe it's not you 0:09:45.120 --> 0:09:46.880 didn't buy it last year. But if you're someone who's 0:09:46.880 --> 0:09:48.480 starting a side hustle, you want to buy a piece 0:09:48.480 --> 0:09:51.600 of equipment startup cost, you know, that can be a 0:09:51.600 --> 0:09:55.480 part of something that you can reduce. I have some 0:09:55.520 --> 0:10:00.600 subscriptions to like media outlets, trade publications that I that 0:10:00.720 --> 0:10:03.480 I you know, can stack up and include as well, 0:10:04.720 --> 0:10:07.320 so you don't use a car. But like, there's there's 0:10:07.360 --> 0:10:11.040 stuff out there. The thing is, it's not it feels 0:10:11.520 --> 0:10:15.600 cumbersome and like complex because it does take I think 0:10:15.840 --> 0:10:18.960 an expert to come in and really identify like, Okay, 0:10:19.000 --> 0:10:22.439 according to this arcane tax regulation, how much of that 0:10:22.480 --> 0:10:26.760 can you deduct? And I think what gets sticky is 0:10:26.760 --> 0:10:29.440 when we try to do it ourselves. The thing about 0:10:29.480 --> 0:10:32.480 having a side business or additional income is I do 0:10:32.520 --> 0:10:36.760 feel like we are more susceptible to IRS audits, right, 0:10:37.559 --> 0:10:40.040 So I think it becomes even more important to like 0:10:40.160 --> 0:10:43.120 get that stamp of approval from a tax professional and 0:10:43.240 --> 0:10:46.280 have that, you know, even put that that expense can 0:10:46.320 --> 0:10:49.040 be put into your business expenses for the year. You know, 0:10:49.760 --> 0:10:52.000 however much I think my tax account, I think it's 0:10:52.040 --> 0:10:54.400 a few hundred dollars for her to maybe more five 0:10:54.480 --> 0:10:56.880 hundreds something like that for her to do my business taxes. 0:10:57.679 --> 0:11:02.679 But the peace of mind is just extraordinary. Are there 0:11:02.720 --> 0:11:06.439 any like specific concerns you have heading into twenty twenty 0:11:06.440 --> 0:11:10.439 two that you're like, oh, you know this might come 0:11:10.520 --> 0:11:11.880 up for me. Yeah. 0:11:11.920 --> 0:11:14.959 I think my biggest thing is that my income increase 0:11:15.160 --> 0:11:18.480 and then the amount I earn outside of work also increased. 0:11:18.520 --> 0:11:20.719 So I just feel like I'm going to say, with 0:11:20.800 --> 0:11:23.719 the wild tax bill, do. 0:11:23.720 --> 0:11:25.400 You think you're going to be in a higher tax 0:11:25.440 --> 0:11:29.720 bracket possibly because of your freelance income. Yeah, yeah, that 0:11:29.720 --> 0:11:31.360 could be an issue, like if you were because you 0:11:31.400 --> 0:11:33.520 know what tax bracket you're in based on your salary. 0:11:33.840 --> 0:11:36.360 But then you do you know, like how much you 0:11:36.400 --> 0:11:38.280 earned in twenty twenty two, or do you keep? Do 0:11:38.320 --> 0:11:40.480 you keep? Do you have a bookkeeper or any kind 0:11:40.520 --> 0:11:41.559 of bookkeeping system? 0:11:41.720 --> 0:11:45.080 I don't maya okay, I don't do. 0:11:45.200 --> 0:11:48.840 We don't get you together. Girls, It's time to do them. 0:11:48.840 --> 0:11:52.000 You a big girl, you gotta do okay. So there 0:11:52.040 --> 0:11:56.160 are there are some relatively simple bookkeeping systems. For example, 0:11:56.360 --> 0:11:59.960 I started with quick books. It's, you know, not that expense. 0:12:00.240 --> 0:12:02.640 It's I feel like thirty to forty bucks a month, 0:12:02.679 --> 0:12:05.840 depending on what you get. And as long as you 0:12:05.920 --> 0:12:08.720 run your you know you deposits and things, you connect 0:12:08.760 --> 0:12:10.560 your bank accounts, it'll keep track of what you have 0:12:10.640 --> 0:12:15.200 coming in. Now, a bookkeeper for me became really essential 0:12:15.760 --> 0:12:18.520 because it was hard to find a good accountant who 0:12:18.600 --> 0:12:21.160 wanted to work with me unless I had a bookkeeper. 0:12:21.480 --> 0:12:24.080 They don't mess around, they're like and a bookkeeper will 0:12:24.160 --> 0:12:28.040 essentially she mine is a she shout out to Tianu. 0:12:28.880 --> 0:12:32.760 They will once a month go through everything that you've 0:12:32.760 --> 0:12:37.520 had coming in your expenses and reconcile everything. And reconciliation 0:12:37.679 --> 0:12:41.240 is basically like you know, we understand where these expenses 0:12:41.280 --> 0:12:43.400 came from. We're going to categorize them and everything, and 0:12:43.400 --> 0:12:46.199 they put it in a pretty package for your accountant 0:12:46.600 --> 0:12:48.920 so they know that they have accurate records when they 0:12:49.000 --> 0:12:52.280 come to calculate your taxes. So even though we talk 0:12:52.320 --> 0:12:55.200 about like getting a tax account and a CPA, I 0:12:55.240 --> 0:12:58.160 think from my own experience, it's just start with a 0:12:58.160 --> 0:13:02.560 good bookkeeper, you know, So a bookkeeper, I would say, 0:13:02.679 --> 0:13:05.640 especially if you're going to continue this freelance income, makes 0:13:05.640 --> 0:13:07.840 a lot of sense for you to just have someone 0:13:07.960 --> 0:13:13.000 on your docket and like where, like where would you 0:13:13.040 --> 0:13:14.600 feel like you could start if you were looking for 0:13:14.640 --> 0:13:15.320 a bookkeeper. 0:13:16.280 --> 0:13:18.679 I'm pretty sure that my brother uses one. So I 0:13:18.720 --> 0:13:22.400 have family that keeps their finances together better than me 0:13:22.600 --> 0:13:24.319 that I can lean on, which is helpful. 0:13:25.840 --> 0:13:28.960 I love that you said, brother, so trust a trusted 0:13:29.000 --> 0:13:32.720 person who could recommend your bookkeeper. I started. I found 0:13:32.720 --> 0:13:36.760 my bookkeeper. She's actually the spouse of one of Tiffany's 0:13:36.760 --> 0:13:38.960 former accountants. So I was like, you know, anybody, and 0:13:39.360 --> 0:13:42.400 I checked out her website, I interviewed her and had 0:13:42.440 --> 0:13:45.000 a great experience, and you know, I ended up going 0:13:45.000 --> 0:13:47.679 with her. I spend about one hundred and fifty how 0:13:47.760 --> 0:13:50.120 much do I spend I think I pay her quarterly. 0:13:50.160 --> 0:13:52.080 It might be like four hundred or five hundred dollars 0:13:52.120 --> 0:13:56.040 per quarter for her to reconcile my books. We also 0:13:56.160 --> 0:13:59.920 use her for brown ambition. There is a like a 0:14:00.120 --> 0:14:04.080 national organization of bookkeepers as well. A lot of bookkeepers 0:14:04.559 --> 0:14:07.280 understand side hustlers because they themselves are doing it as 0:14:07.320 --> 0:14:09.600 a side hustle, you know, like they may be an 0:14:09.600 --> 0:14:11.760 accountant by day and then a bookkeeper on the side 0:14:11.760 --> 0:14:15.400 for extra income or a finance like a payroll specialist 0:14:15.440 --> 0:14:17.560 for a company, and then on the side they do bookkeeping. 0:14:18.920 --> 0:14:22.520 So I would definitely find you a bookkeeper first, and 0:14:22.560 --> 0:14:26.560 then the accountant. Even if you were wanting to work 0:14:26.560 --> 0:14:29.760 with an accountant for twenty twenty three, sorry for twenty 0:14:29.800 --> 0:14:34.120 twenty two taxes, which are due right now, they're probably 0:14:34.160 --> 0:14:36.520 going to want heading in. They're going to be like, 0:14:36.600 --> 0:14:38.160 do you have a bookkeeper? Do you have a profit 0:14:38.200 --> 0:14:40.680 and law statement for twenty twenty two that I can 0:14:41.200 --> 0:14:45.080 you know, quickly go through? So I would do what 0:14:45.120 --> 0:14:46.360 you can to get something like that. 0:14:46.520 --> 0:14:50.600 Ready, Wow, this is great, really herpful. 0:14:51.520 --> 0:14:53.040 I feel like it's the kind of stuff you already 0:14:53.040 --> 0:14:56.080 know what it's just like I look at it. You know, 0:14:56.720 --> 0:14:58.840 all right, be a fan. You are listening to the 0:14:58.880 --> 0:15:02.160 ba qa. We are going to take a quick break 0:15:02.200 --> 0:15:04.600 and be right back with more of your questions and 0:15:04.720 --> 0:15:09.920 our answers. Okayva fan, we are back answering more of 0:15:09.960 --> 0:15:13.040 your questions for the BAQA. Let's go. And the next 0:15:13.040 --> 0:15:15.960 thing to think about too, is like you as a 0:15:15.960 --> 0:15:18.240 business owner. Oh, I forgot to ask have you established 0:15:18.280 --> 0:15:19.280 yourself as an LLC? 0:15:19.600 --> 0:15:22.800 So that was another like part of my question was 0:15:22.920 --> 0:15:26.000 like is it better to establish an LLC? Is it 0:15:26.040 --> 0:15:28.480 better like easier to get tax write offs or deductions 0:15:28.480 --> 0:15:30.800 if you do that? Is that something that I should 0:15:30.880 --> 0:15:33.280 be doing because I've been thinking about that for a 0:15:33.280 --> 0:15:33.840 while now. 0:15:34.520 --> 0:15:38.160 So you haven't established an LLC yet? Oh dang, okay 0:15:38.640 --> 0:15:41.840 that is essential? Yeah, yes, because for you to qualify 0:15:41.840 --> 0:15:44.160 for these business seductions, you have to have a business 0:15:44.240 --> 0:15:48.000 right right, So okay, that changes a lot of things. 0:15:48.000 --> 0:15:50.280 I almost wish we can, like shu, go back to 0:15:50.320 --> 0:15:53.520 the beginning. And in this case, I'm not exactly sure. 0:15:53.760 --> 0:15:57.000 I don't My instinct says maybe the ship has sailed 0:15:57.040 --> 0:15:59.080 for like business write offs for you because you're not 0:15:59.120 --> 0:16:02.920 an LLC. But I would say, like if the freelance 0:16:02.920 --> 0:16:05.640 income has been coming in, like do you ballpark know 0:16:05.640 --> 0:16:07.200 how much you made in twenty twenty. 0:16:06.920 --> 0:16:12.800 Two and into you're probably maybe like twenty or thirty thousand. 0:16:13.080 --> 0:16:14.640 Like babes, Yeah, have a business. 0:16:14.720 --> 0:16:18.040 Yeah, well it didn't start as that like that was 0:16:18.280 --> 0:16:22.040 I know it? Did it start it as like small? 0:16:22.600 --> 0:16:24.760 I don't know, five K, four K and. 0:16:24.680 --> 0:16:28.680 Then the girl Yeah, no, it's okay, better late than ever. 0:16:28.760 --> 0:16:31.400 But I feel like a thousand percent start you in 0:16:31.720 --> 0:16:33.680 LLC so that you can take advantage of this in 0:16:33.720 --> 0:16:37.320 twenty twenty three. I mean, honestly, that kind of reduces 0:16:37.320 --> 0:16:39.360 some of the pressure because I don't know that there's 0:16:39.440 --> 0:16:41.040 much that can be done for you to like go 0:16:41.120 --> 0:16:43.840 back and get tax right offs at this point. I'm 0:16:43.880 --> 0:16:45.760 not a tax professional. So that's a good question for 0:16:45.800 --> 0:16:51.440 like a CPA. Let me see for sure you should, uh, 0:16:51.680 --> 0:16:54.400 you know, when you're in LLC. Then you can decide 0:16:54.440 --> 0:16:56.960 if you want to be a single member LLC, which 0:16:57.000 --> 0:16:58.560 it sounds like you're probably in that kind of place. 0:16:58.600 --> 0:17:00.600 It doesn't sound like you're earning enough to be an 0:17:00.760 --> 0:17:04.240 escort at this point. Just yeah, just just start there, 0:17:05.080 --> 0:17:07.320 you know, start somewhere, treat yourself like the business that 0:17:07.359 --> 0:17:09.600 you are, because for sure you're doing well. 0:17:10.000 --> 0:17:12.439 Great, this is I mean, I've been thinking about all 0:17:12.440 --> 0:17:15.280 of this, so it's good to hear and get confirmation. 0:17:16.000 --> 0:17:17.000 Yeah, how old are you? 0:17:17.040 --> 0:17:17.119 Do? 0:17:17.160 --> 0:17:20.439 Might be asking, I'm thirty, Just thirty, that's awesome. I 0:17:20.520 --> 0:17:23.879 just love like having you know, an extra twenty to 0:17:23.920 --> 0:17:27.239 thirty k coming in. That's fantastic, you know. And I 0:17:27.280 --> 0:17:31.520 feel like the tax part of it, it just sours everything. 0:17:31.600 --> 0:17:34.080 When it does. You have to deal with the additional 0:17:34.160 --> 0:17:35.960 stress of it, and you're like, dang, do I even 0:17:36.000 --> 0:17:36.760 want this life? 0:17:37.040 --> 0:17:37.200 No? 0:17:37.280 --> 0:17:38.280 I do, think you too? 0:17:38.600 --> 0:17:40.720 I do? Yeah, I do want it. I would love 0:17:40.800 --> 0:17:44.400 to eventially move to having my own business. But every 0:17:44.720 --> 0:17:46.960 this time of year, it gets like, wow, did I 0:17:47.040 --> 0:17:48.960 really earn that much? Let me go back and look. 0:17:50.720 --> 0:17:53.119 Yeah. And when you get a CPA too, they can 0:17:53.160 --> 0:17:55.320 help you decide. Like, for example, one of the things 0:17:55.320 --> 0:17:58.920 that my CPA does is advise how much I should 0:17:58.960 --> 0:18:01.840 contribute for retirement, you know, based on my based on 0:18:01.880 --> 0:18:06.440 my income and retirement contributions as well. It's a huge 0:18:06.440 --> 0:18:08.600 part of like one of the benefits of having a 0:18:08.640 --> 0:18:11.480 business is you know, there are types of accounts you 0:18:11.480 --> 0:18:15.520 can open like a self employed or that step I 0:18:15.720 --> 0:18:19.040 RA or a solo for one K like I have now, 0:18:19.640 --> 0:18:22.000 and you can actually use your extra income to like 0:18:22.080 --> 0:18:26.879 invest for your future. Yeah all right, so how are 0:18:26.920 --> 0:18:28.119 we going to get you a CPA? What do you 0:18:28.119 --> 0:18:29.400 feel like your next steps are there? 0:18:29.960 --> 0:18:33.280 Okay, next steps start to get a CPA STAP. They're 0:18:33.280 --> 0:18:39.280 going to use whoever bookkeeper bookkeeper? Yeah, CPA, Well you 0:18:39.320 --> 0:18:41.359 comes first, because I feel like taxes are due in 0:18:41.400 --> 0:18:42.960 a little more. 0:18:42.800 --> 0:18:45.360 Than a month, so yes, this is true. You can 0:18:45.400 --> 0:18:48.280 file an extension, like if you want. Yeah, you can 0:18:48.320 --> 0:18:50.600 file an extension. I actually filed. I didn't file. My 0:18:50.600 --> 0:18:53.639 accountant did because I was like kind of a mess 0:18:53.680 --> 0:18:55.680 and I've missed a deadline and she's like, it's fine, 0:18:55.720 --> 0:18:58.919 everyone files extensions. Let me follow you an extension. So 0:18:59.000 --> 0:19:02.159 that's been done. So you could file an extension on 0:19:02.200 --> 0:19:06.040 your individual taxes if you wanted to. Let me see 0:19:06.080 --> 0:19:08.040 while you're trying to find because taxes are due one 0:19:08.200 --> 0:19:13.159 like mid April. Okay, yeah, it doesn't. Now. The thing 0:19:13.200 --> 0:19:15.679 with a tax extension that can be a little wonky 0:19:15.760 --> 0:19:18.600 is it doesn't actually stop when you would owe your 0:19:18.640 --> 0:19:24.600 taxes it's just basically like it's annoying, I know, But so. 0:19:24.560 --> 0:19:26.440 You can't do it. 0:19:26.720 --> 0:19:31.639 Because we're all supposed to be mathematicians. Maya, but I 0:19:31.760 --> 0:19:34.639 would I would do both at the same time, like 0:19:34.680 --> 0:19:36.240 try to find you a bookkeeper because you're going to 0:19:36.320 --> 0:19:40.639 need them anyway, and then find a CPA an accountant 0:19:40.680 --> 0:19:42.439 who and this is a thing, like it's fine to 0:19:42.440 --> 0:19:45.720 go to family, but I would definitely go to accountants 0:19:45.720 --> 0:19:49.720 who actually work with like nine to five entrepreneurs and 0:19:49.800 --> 0:19:52.919 understand that whole you know, really intimately, and they're not 0:19:53.000 --> 0:19:57.159 just like a tax preparer or an enrolled agent, like 0:19:57.200 --> 0:19:59.560 they can probably process W two's and things like that, 0:19:59.600 --> 0:20:02.040 but do they have the level of sophistication to be 0:20:02.080 --> 0:20:04.919 able to work with someone, you know, with business income. 0:20:05.400 --> 0:20:09.840 That's another question. And you may even be fine because 0:20:09.840 --> 0:20:11.280 I know, I know it's a lot like twenty K, 0:20:11.359 --> 0:20:14.680 thirty K whatnot, But you may even be fine using 0:20:14.720 --> 0:20:18.080 like whatever software you've been using so far, because they're 0:20:18.080 --> 0:20:20.359 going to they have the fields for you to fill in, 0:20:20.520 --> 0:20:22.280