We report the realization of a new iterative Fourier-transform algorithm for creating holograms that can diffract light into an arbitrary two-dimensional intensity profile. We show that the predicted intensity distributions are smooth with a fractional error from the target distribution at the percent level. We demonstrate that this new algorithm outperforms the most frequently used alternatives typically by one and two orders of magnitude in accuracy and roughness, respectively. The techniques described in this paper outline a path to creating arbitrary holographic atom traps in which the only remaining hurdle is physical implementation.