Why Establishing a Business Bank Account is Crucial for Authors

When starting their writing career, many authors don’t think it’s important to have a separate bank account for their work. But having a business bank account is not just a good idea; it’s crucial.

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I opened a business bank account before my first novel went on sale on Amazon.

At first, I only made a little money from my book sales, not even enough to cover basic costs. But gradually, I began earning much more, several thousand euros a month.

This increase in income made it clear how important it was to manage my finances properly, especially since I had to pay for things like design, editing, advertising, taxes, and other professional services. Mixing these expenses with my personal spending would have been very confusing.

Many new authors think it’s okay to mix their personal and business money, especially when they’re not making much yet. But that’s a mistake.

A separate business account becomes more and more necessary as your career and your finances grow. Based on my nearly fifteen-year experience, starting with small earnings and growing to a significant income, having a clear separation from the start saved me from the huge headache of separating my finances later on.

Having a business account also makes handling taxes and accounting much easier. If you’re audited, it’s simpler to show your business transactions separately from your personal ones. This separation makes bookkeeping more straightforward, ensures accurate financial reports, and helps you get all the tax deductions you’re entitled to.

Opening a business account also shows you’re serious about your writing as a business. It marks your commitment to your work and your goal to succeed financially. This professional attitude helps in the long-term growth and recognition of your career.

In short, a business bank account is vital for authors.

It’s not just for managing money better but also for showing commitment to your writing career. Regardless of how much you earn at the beginning, setting up a business account is a key…