Finance

The Trap of “Look How Much Money I Just Made”

Performing magic professionally means that you’re also a small business owner. That means that any of the money you make performing is actually money that goes into your business. 

It’s easy to think that after doing a magic show it FEELS like easy money. You can leave the house for a few hours, have some fun, perform a few tricks, and come back home $1,000 richer. Compare that to everyone else you know who needs to go to work for an entire week to earn what you make in a single afternoon.

This type of thinking is very deceptive though because what you make from performing is NOT what YOU personally earn. It is NOT your salary. Your performance fee is what the BUSINESS makes. The money is what you’ll need to operate on to sustain your entire business.

For example, let’s say you perform at a show that pay’s you $1,000. Let’s see how that would breakout into your business bank accounts and personal accounts.

Performance Fee: $1,000
Sales tax / Income tax (25%): $250
Business account (25%): $250
Personal savings (15%): $150
Rent (20%): $200
Your wage (15%): $150

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Paperless Tax System for Canadians

Every year around tax season I always swear that I’ll be more organized next year. Then next year rolls around and I’m still matching up a box full of receipts with my credit card statements. In every other aspect of my business I have systems in place to keep me ultra organized, except when it comes to my taxes.

I’ve always wished that there was a better way to organize my taxes throughout the year. Ideally I’d like to ditch the paper receipts completely and go to an entirely digital system.

Ideally I’d like a system that:

  • Is entirely digital so I can get rid of paper receipts as soon as I receive them
  • Support the ability to import / forward receipts I receive by email since I do a lot of online shopping for business supplies
  • A mobile app so I can take pictures with my iPhone
  • Ability to save the GST/PST information from receipts separately for tax purposes
  • Ability to save receipts into different Tax Categories (Fuel, Education, Supplies, Meals, Etc.)
  • Support for exporting into TurboTax / Or has support to generate reports that makes doing taxes at the end of the year easy

I did some research and I found a few products and services that fill this market but none of them met all of my criteria. There were several solutions that were close but they didn’t have support for Canadian users.

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