Accounting for Authors

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.




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