[Lenio]

Recently I have taken the plunge into working just for my freelance clients. My art and design skills greatly exceed my business skills... does anyone have suggestions on accounting software, job tracking software, and other such business related apps?

Everything I have looked at to this point is either way over the top of my head, both financially and needs wise, or too limited and obtuse in terms of "how to" support.

Thanks in advance...

[KaptainKaya]

Either Quickbooks Pro for Mac, or MYOB Account Edge.

Not sure of anything else though really, you might consider hiring an accountant

[Lenio]

Originally posted by KaptainKaya:
Either Quickbooks Pro for Mac, or MYOB Account Edge.

Not sure of anything else though really, you might consider hiring an accountant

I was hoping to keep everything "in-house"... which seems to me to be the point of all the new shareware apps popping up at Apple's OS X downloads page.

I think at this point I will have no choice but to hire an accountant.

Thanks for your thoughts!

[art_director]

Originally posted by Lenio:
I was hoping to keep everything "in-house"... which seems to me to be the point of all the new shareware apps popping up at Apple's OS X downloads page.

I think at this point I will have no choice but to hire an accountant.

Thanks for your thoughts!

Lenio:

i've been freelancing for a few years. i handle my own day-to-day billing but retain an accountant for tax prep. i bought myob but don't really use it. my wife, also a freelancer, does use myob. her freelance business requires a high degree of accounting for jobs, inventory, etc. so the app is perfect for her.

i would urge you to hire an accountant for your taxes. they are on top of changes is tax law that could affect you and your return / payments.

one other thing you should consider is how your want to run your business. you can be a sole proprietor, which is what most freelance art director / designer / writers do or your can form a business. if you decide to form a business you'll have to file with your state and keep much better records. depending upon the type of business you form you may achieve some great financial benefits.

the two most appropriate types of business you can form are an LLC (limited liability corporation) or an S Corp. both S Corps and LLCs will protect your personal assets (house, etc) if a client should sue you -- something that's highly unlikely but do you want to take a chance? an LLC would essentially be run the same as a sole proprietorship in terms of taxes. an S Corp requires a higher degree of involvement -- paying yourself a salary, keeping tighter records, etc. an S Corp can also save you a LOT of money. for example, if you made $100,000 in 2003 as an S Corp you could save *approximately* $4500 in taxes. what you're doing is paying yourself a base salary and then giving yourself bonuses quarterly, or yearly. this is entirely legal and considered a smart approach but may require the services of a book keeper.

regardless of what direction you take your business it's best to consult with an accountant. i would check with your local aiga to find accountants who specialize in our business. they can save you a lot of money because they understand our biz and can advise you on where your deductions can be found.

my last bit of advice: know what you can deduct. as an art director i work on tv, print, ooh, web and direct. that makes it possible for me to write off all my magazines (whether industry related or not), books (design or otherwise), cable tv, video rentals, movies tickets, plays, my isp, computer related expenses, office supplies, newspaper subscriptions, art exhibit tickets, audio and video equipment, camera equipment, cell phone (used as my business line), fax machine and dedicated line, music cds, mileage to / from clients and research trips and the space in my house i use as my dedicated office.

best o' luck.

[Lenio]

art_director,

Thank you very much for pointing me in the right direction... it is so often the hardest part of any job. Your reply actually reminded me that I have a Lawyer friend who can actually assist me in the business formation portion. And I am coming to the conclusion that getting an Accountant is absolutely necessary.

Again, thanks for your thorough comments.

[art_director]

it's great that you have a lawyer friend to help with the legal filing. it's too cumbersome to do yourself and it's best to have an atty make the paperwork airtight. that should save you approx $2000 in legal fees. your out of pocket with the state should run approx $125.

yes, get an accountant. a good one will run you $200 - 500 but they pay for themselves in the tax they can save you. for example, the first two years i used an accountant i did my taxes myself and then hired the acct. when i saw he saved me $4000 i was sold on using them.

word to the wise: start keeping receipts for everything and categorizing them for your deductions. it makes life much easier come the end of the year. also, start tracking your work mileage / public transportation costs. mileage for 2003 will be 36¢ / mile. if you do a fair amount of driving that adds up rather quickly.