I have been Freeelance since 1979 in PA. Incorporated in '81 as a sub S corp. My wife has a BA in accounting and an MBA and has been invaluable as an accountant and business advisor even though she knows little about the details of the production business. We hire an accountant to prepare our taxes, but the day to day stuff as well as the final reports are handled with little pain in Quickbooks. As with any software the inital set-up is really important.
My advice/experience has been if you are going to create a business in your home, get a seperate telephone line, have space that is 100% used for business, letterhead, envelopes and business cards with company name although very old school go a long way in establishing credability with the various taxing authorities, use a seperate credit card exclusively for business expenses, a seperate checking and savings account...we use a completely different bank from our personal finances just to help keep things seperate and right from the start get an accountant that understands what you do and how you do it. And remember, the accountant works for you. Shop around and find someone that you like. We have an independent guy that is not part of a firm. An independent working for a freelancer...works for me
The inital set up of your accounts, books and expenses is worth the extra time and some expense...less than 1K...to making the business side of your workflow as painless as possible. And remember, yes you can write things off, but you must make money before you can write off expenses.
Also, if you are going to create a business that is just you...consider using your name in it. I made the mistake of choosing a LONG name that nobody really remembers...Video Communication Productions. Any more I just use J
Good luck
J
