Irregular income from creative work.
WHAT THE PATTERN IS
Concentrated income from projects, with gaps.
WHAT TO ESTABLISH
Monthly requirement, personal and business.
WHAT TO BUILD
Reserves covering several months.
WHY
Creative income is unpredictable even when the work is good.
WHAT TO SET ASIDE FROM EVERY PAYMENT
Tax Reserve Equipment replacement
WHY EQUIPMENT REPLACEMENT
Cameras, instruments and computers fail, and replacing them unplanned is a crisis.
WHAT TO TRACK
Income by source Which activities are actually profitable Time spent per project against fee
WHY TIME PER PROJECT
Creative work is chronically under-costed and only records reveal it.
WHAT TO SEPARATE
Business and personal money.
WHY
Records are otherwise unreliable and deductions indefensible.
WHAT EXPENSES TYPICALLY QUALIFY
Equipment and its maintenance Software and subscriptions Studio or workspace costs Travel for work Materials Professional fees Training
WHAT TO KEEP
Evidence for every expense.
WHAT TO ESTABLISH ABOUT ROYALTY INCOME
When it arrives, and from where.
WHY
Royalty payments lag by months and they arrive irregularly.
WHAT TO RECONCILE
Royalty statements against expected income.
WHY
Errors and omissions in royalty accounting are common and unchallenged.
WHAT TO ESTABLISH
That you understand what each statement covers.
WHAT TO PLAN FOR
Periods with no project income.
WHAT TO AVOID
Spending project payments as though they were monthly income.
