When I went out on my own as a grant writing consultant eleven years or so back, I did some things right and some things carelessly. After completing my extended taxes yesterday, I was reminded of some key mistakes I’ve made regarding my taxes that I’ll share to inform you about pitfalls in case you are a new consultant or planning to go out on your own.

Now I realize that many people are more careful about money than I am, and some are less so. Take this advice for what it’s worth to you, and if you end up saying “well, duh!” to these suggestions, this post simply wasn’t written for you. It’s more for the remedial book keepers out there like I used to be.

Grant Writing Consultants TOP TEN FISCAL DO LIST:

1. Pay your quarterly taxes on time, and in full. (It’s so EASY to put it off and so costly to do so)
2. Hire a book keeper on an hourly rate to keep the books and remind you of all the stuff you don’t know is required in running a business. (You will cringe every time they come in the office, but it’s a good cringe, trust me.)
3. Photocopy every check you receive and staple it to the invoice that generated it. (Not everyone who pays you is as organized as they should be and you may need to refer to it later)
4. Keep a mileage journal for your car! (Miles add up so fast you will end up cheating yourself and at $0.55 per mile, it adds up very fast.)
5. Keep your receipts! (Keep every receipt for everything you buy or spend related to the business. I store mine in envelopes marked by the month.)
6. Be aware of opportunities to save costs – (If a large document needs copying, ask the client to do it; need postage, arrange for the client to mail it; need special software or online access ask the client to provide it as part of the contract even if you have to give it back at the end of the contract)
7. Invoice Promptly (Few clients pay promptly but you can do your part)
8. Follow Up on slow paying clients – (Gentle reminders about payment are not inappropriate.)
9. Use a written agreement or contract – (Always put it in writing or you’ll get burned, guaranteed.)
10. Pay your quarterly taxes on time, and in full. (Yes, I know it was number 1, it’s important enough to put in here twice!)

Those are my suggestions on keeping your fiscal house in order. Consulting is rewarding but what you don’t know can sink your business. So get the expertise you need before you step into some deep IRS, State, or Municipal fiscal sinkhole!