Think Like an Indie Business

This is related to Watch out for bad tax advice! about the architect who received incorrect advice from AARP. I think it shows how a creative person [Susan is an interior designer] with perseverance can master the business side of an indie venture. It's the "indie-business mindset" at work.


June --

Thanks June for your answers!

Since the bulk of his [the gentleman architect] indie work and income occurred during the last quarter of '07, it was not a large $ amount. Also, when we reviewed all of his expenses, he did not have a lot, nor were they complicated to figure out. In light of the amounts, he decided to have them done now and not file an extension.

We lucked on to an accountant at HR Block who does a lot of indie taxes, and he echoed your response to the bad advise we were given. We did okay - when the HRB guy showed us how to estimate quarterly taxes for 2008, based on the income earned for the 2007 quarter, it was a little more than the amount less expenses he owed for 2007. The three of us reviewed all of the expense deductions carefully, and discussed the differences in how certain things can be deducted. The HRB guy's answers were in line with my recollection from your book. As I said, there were not a lot of expenses, nor were they complicated. We only differed on the issue of polo shirts with the company name/logo purchased to give to clients as gifts and one for him to wear. We ended up deducting (-$25.) the one given as a gift, but were advised that the remaining 3 did not qualify as promotional because they were considered "street wear". I had to concede on that point, since I was not clear as it is explained in your book.

We are learning a lot and grateful that our first lesson involved a smaller amount rather than a full year's worth. For 2008, I am hounding him to save every scrap of receipt for everything, no matter how insignificant he may think it is. My mantra is that it all adds up, and I am carrying your book every where I go till I can recite it in my sleep! It will be my role to do the simple system while he goes out and earns the bucks! I have plans to eventually go indie myself, and hope by then that the indie way of thinking will have become second-nature to me.

I appreciate your time and your book.
Regards,
~susan~
licensed interior designer



Dear Susan,

Apologies for the delayed response. Just at the time of our correspondence I did a complete technology switch in my office and things got messed up.

Decades ago I taught for HRB. There are many knowledgeable people there. Congratulations on finding a savvy guy who can also explain things.

I'd need to do some research on the "polo shirts with the company name/logo." Are they streetwear? Or are they considered advertising similar to paying for your child's high school band or softball uniforms that have your business name on them? Or are they under-$3-gifts used for advertising?

I wish you much success on your indie thinking.

Best,
June