At Bench Accounting, we provide our animation clients with regular bookkeeping updates. Have a financial concern that needs immediate attention? Rest assured, our quick response time means we'll get back to you in one business day or less.
Our platform enables you to automate data inputs from most major industry-standard software, circumventing typical errors. We collaborate with tech giants like Adobe, Autodesk, Toon Boom, and Wacom—ensuring your finances are precise and up-to-date in the animation sector.
Wave farewell to heaps of sketches and labor-intensive manual cataloging—we automate inputs directly from linked accounts. Gain insights from one central dashboard to have a clear view of your animation projects and make intelligent creative and business decisions.
DR. BUKKY KOLAWOLE
As an animator, you have several specific tax deductions that you can take advantage of, due to the unique nature of your profession. These may include:
- Software and Equipment: Animators often need specialized software, hardware, and other equipment to do their job. The cost of these tools can often be deducted from your taxes.
- Home Office: If you use part of your home exclusively for your animation work, you may be able to deduct a portion of your home-related expenses, such as mortgage interest, utilities, and repairs.
- Professional Development: If you attend workshops, courses, or seminars to enhance your skills, these costs can often be deducted.
- Travel Expenses: If your work requires travel, you may be able to deduct these expenses, including airfare, accommodations, and meals.
- Business Expenses: All money spent during the course of doing business, including phone bills, internet charges, advertising costs, professional services fees, and any other costs associated with running your independent business can be deducted.
- Industry Association Fees: If you are a member of an animation industry association, your membership dues might be tax-deductible.
Keep in mind that tax laws vary and change frequently, so always consult with a professional to ensure you’re maximizing your deductions and staying within the rules.
As a freelance animator, you should manage and record your income and expenses by regularly tracking and categorizing your financial transactions. This includes understanding the nature of your expenses such as software subscriptions, equipment purchases, and drawing materials which are tax-deductible. You should also keep a good record of your income from various clients and projects. Key steps include:
<ul><li>Invest in accounting software specifically designed for freelancers, such as Bench.</li><li>Save and categorize all receipts related to your business expenses.</li><li>Issue invoices for your work and track payments received.</li><li>Set aside money for tax payments.</li><li>Consider hiring a bookkeeper or accountant who specializes in freelance businesses.</li></ul>
With Bench Accounting, you gain access to real humans who understand your business needs, assist you with your bookkeeping, and provide on-time financial reports. This equips you to focus more on your creativity and less on managing finances.
There are several financial strategies and considerations for an animation studio to maximize profitability and sustainability:
- Budget Management: Animations can be expensive to produce. Therefore, effective budget management is crucial to control costs and ensure profitability.
- Investment in Technology: The animation industry requires the latest technology to stay competitive. Studios need to consider the cost of regular upgrades and new software in their financial plans.
- Hiring and Talent Retention: Talent is an integral part of the animation industry. Proper financial planning is required to hire highly skilled and creative individuals and keep them motivated.
- Project Financing: Large animation projects often require substantial upfront investment. It is important to secure the necessary funding before embarking on such projects.
- Revenue Diversification: Animation studios should not solely rely on income from film releases. They should consider other sources such as merchandise, licensing deals, and online streaming rights to diversify their revenue.
Nope! All bookkeeping is completed in-house.
Your bookkeeper will be your main point of contact, but at times you might hear from another member of your team. This is usually when your bookkeeper goes on vacation, is sick, or otherwise unavailable.
We handle the bookkeeping for you but sometimes we’ll need your input, especially at year-end. On average, expect to spend 15 minutes each month answering questions for your bookkeeper, or uploading supporting docs.