Sunday, October 25, 2009

The Soporific Effects of Tax Education


Eventually some kind sod will pay you for your creative work and if you plan to make a living from that enterprise then you are a business. I thought it was just having a jolly good lot of fun and being paid to keep doing it. Apparently not, you have to get all serious about it.

At some stage I decided the best way to understand what I needed to do business-wise was to visit an accountant. What I discovered in fact is that I seem to have an inbuilt hearing filter that does not allow me to understand the words coming out of an accountants mouth. I peered at her closely, I nodded sagely, I willed myself to understand what she was saying but it was no use. When I left I looked down at a little list of questions I'd taken with me. Beside the questions were little squiggles and marks as though I had attempted to record an answer but my brain was so confunded I had not been able to even get a simple word out the end of my pen. Such as "Huh?" I liken the whole thing to being abducted by aliens. I couldn't remember much of what had happened yet I felt worried and slightly disturbed. At least there were no probes. Now, I have to say here that it wasn't really the accountants fault, I should have asked for further explanations but she was looking at me so encouragingly I didn't want to admit I had no idea what she was talking about.

So, in case you are subject to the same strange effects of tax jargon, here is what I found to be the best way to find out all you need to know: I looked up the Australian Tax Office website and ordered free booklets of tax and small business, record keeping, home-based business. It all arrived a few days later and I have to make an admission here. These books are written so that even a moron can understand and this moron found that, explained in simple terms everything was quite interesting and comprehendable. I applied for an ABN (Australian Business Number) from the same place. You also need to register your business which is a separate thing. You can do that from here too. For myself, I am a sole trader and am trading under my own name but you may want to have a name for your business. In that case you need to register a business name. Think of at least 10 names as you can't have it if someone else has already thought up the same brilliant title. The tax office also have a phone service and I found them incredibly helpful and nice. It was as though they have heard every dumb question possible and nothing you can say will shock them. They kindly kept all tone from their voice that would indicate they thought I was a bit stupid. I recommend them very much. Now at some time you will need an accountant and I strongly suggest you find out which ones near you already deals with people in the industry. Ask other writers or artists who they use or ask one of the groups you join who they recommend. Then go and meet them. A lot will not charge for a first meeting (ask first) you can at least check out how they fare on your comprehension filter before you sign up for a life of fun together.


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