This is the resources page for ACCOUNTING FOR AUTHORS by D.F. Hart and Mark Leslie Lefebvre.
D.F. Hart’s Accounting for Authors Page
Charts and Spreadsheets from the Book
Quick Reference Guide: Definitions and Formulas
Accounting Equation: Assets = Liabilities + Equity
Accrual-Basis Method: means of recording transactions; items are recorded when the activity occurs, regardless of when money changes hands.
Assets: Things your business OWNS
Balance Sheet: the ‘show the math’ financial report of the “Accounting Equation”
Break-Even Point: Break-Even Units = Total Fixed Costs / (Price per Unit – Variable Cost per Unit)
Cash-Basis Method: means of recording transactions; items are not recorded until money changes hands.
Cost of Sales (COGS): money spent to make your product.
Cost-Per-Click: Cost / # of clicks
Cost-Per-Sale: Cost / # of sales
Double-Entry: Each entry in accounting is two-sided (balancing the see-saw).
Equity: What is left over when you subtract everything you OWE from what you OWN
G&A / Overhead Expenses: money spent to run your business and advertise/sell your product.
Gross Income (Gross Profit/Loss): Sales Revenue – Direct Costs
Gross Margin: (Gross Income / Revenue) x 100
Income Statement: the ‘show the math’ financial report that lists your revenue and all your expenses.
Liabilities: Things your business OWES
Net Income (Net Profit / Loss): Gross Income – Indirect Costs
Net Margin: (Net Income / Revenue) x 100
Net Return: results of activity – initial cost of activity
Payables: Expenses your business owes that have not been paid for yet
Payback Period: initial cost / first year revenue
Readthrough: # of units Book B / # of units Book A
Receivables: Revenue your business is owed that have not been paid to you yet
Return on Investment (ROI): (net return / initial cost) x 100
Business Structure Types Information by Region
Other Resources References in the Book
Closing the Deal on Your Terms: Agents, Contracts and Other Considerations, Kristine Kathryn Rusch, WMG Publishing, 2016.
Estate Planning for Authors: Your Final Letter (and why you need to write it now), M.L. Buchman, Buchman Bookworks, 2017.
Financial Statements, Third Edition: A Step-by-Step Guide to Understanding and Creating Financial Reports, Thomas R. Ittelson, Career Press, 2020.
ScribeCount (Affiliate Link): https://www.scribecount.com/?ref=marklefebvre1