Since starting my business last year, I’ve really made it a point to be disciplined with documenting my expenses and making sure all my financials are in order.  Although, I think there’s still room for improvement, my accountant tells me, I’m one of his best clients

So how did I get such praise? Although a few accounting and excel classes in college I’m sure helped, my experience as an admin assistant processing expense reports, reallly helped me in the long run.

One of the main things I feel have helped me stay on track is my “expense notebook”, a place to keep track of all my receipts!  It’s a bit time consuming, but I tape each receipt to the notebook in chronological order.

I also utilize my google calendar, by adding mileage, toll, and any expenses I incurred for a meeting or event, in the notes area. It’s an easy way to keep information organized. Last but not least, I created a spreadsheet that makes all the information easy to read and calculate come tax time.

Another best biz practice is to check in quarterly with your accountant to assess whether or not you need to file taxes. Breaking up the year into quarters to evaluate your financial statements, and pay taxes, definitely helps ease the stress of a cutting a big check to the IRS the following year. By filing quarterly you can break up the payments, and hopefully end up with a nice return instead.

If you don’t have an accountant, check out California Lawyers for the Arts (www.calawyersforthearts.org) as a resource, they offer workshops year round. You can also contact my accountant, Jotham Ty at jotham@tyacpa.com

In all business situations, knowing about the laws surrounding the industry you’re involved in, is essential to the longevity of how successful the business becomes.  Contracts, agreements, and all other transactions, whether monetary or not, should be legally documented.  Why? Because, these are the rules, regulations, and expectations, of what the deal is… Once both parties agree on the terms, it leaves little room for someone to not follow through with their end of the deal.  Those who fail to come through, will have a weak argument to battle in, or outside of the courtroom.

The higher the stakes, the more you realize how important it is to invest time and money in the legal aspects of your business.  This is something entrepreneurs should do first, to protect your assets is a top priority.  So when I got an email about a music business seminar happening in the Bay from Kofi Acquaah-Arhin (Papa Lo Down’s attorney/legal advisor), I thought I should let you know as well.

The Volume 2009 – Music Business Seminar, an all-day educational event for the Bay Area music community, is the perfect place for independent artists to learn more about this element of their career.  I highly suggest attending, especially since the fees are WAY less than many music industry events.

Check below or go the website www.calawyersforthearts.org for more info: