Having a blogging “business” indicates having revenue. With the good, comes the bad, the bitter with the sweet, and the yin with the yang. Taxes can be a thorn in your side or a blessing in disguise, depending on how you look at it. I’m not a tax agent, so do consult one if you are unsure about any blogging-related taxes. To do blogging as a business, you have to be ready for the money to start pouring in.
I pride myself in being well organized in my personal and professional life. When it comes to money, It’s no different. I like to get things ready before the time is at hand. My taxes are easy to get done because I have a system that helps me keep them caught up. By logging my business expenses and income as they occur, I’m prepared. By following these 5 tips to make bookkeeping easier for bloggers, you will be prepared as well.
1. Open A Business Bank Account
Organizing my personal and professional finances is a must. My number one bookkeeping rule is to keep a separate business and personal bank account. This is blogger bookkeeping 101. I also keep an escrow account for refunds and deposits. When you make business transactions, use your checks or card from your business account religiously and you’ll be able to track your expenses easily. This makes calculating what to write off so much simpler. I know business owners who have run their companies for years without stopping for an hour or two to open up a business account. Please. If you do not have one, either make it to a bank today or put it on your calendar for tomorrow.
2. Track All Your Expenses
By inputting expenses as they happen, you will be able to avoid the headache of trying to sort everything out at the end of the year. When it comes to tracking your expenses for your blog, there are a lot of ways to do it. I list expenses like travel, training, domain name and hosting cost, emailing marketing, monthly membership, etc.
3. Track All Your Income
When it comes to the multiple income streams blogging provides me, entering my amounts when received, is easier than waiting until the end of the month or year. Whether it’s a paystub, paid ads, payment for a course, sponsored posts, affiliate payments, events or the like, all I do is bring up the Excel spreadsheet and drop the amount in the designated column. I find this keeps me less confused than having various programs.
4. Stay Ready
The best practice is to be prepared before things occur. Tim and I were at a networking MeetUp and ordered a large onion ring with drinks. Once I knew we were preparing to leave, per routine, I opened my phone and entered our total expenses for the night. Two minutes and done. This is how you stay caught up.
5. The Reason For Tax Season
When it comes to tax season in America, usually, you’re making time to get it done. How well you’re organized will be the difference between whether you’re in a flurried rush, or calmly collecting your information. You may plan on hiring a tax professional or you want to tackle it yourself. I put aside 30% of my monthly gross revenue, it will make paying the necessary taxes a little less painful. It works like a charm.
Bookkeeping for a blogging business isn’t the most enjoyable task, but it’s definitely rewarding when you go at it with a pre-planned strategy. For me, it’s like counting calories so my clothes continue to fit (lol). I set aside time for this daily.
Taking these small steps from day to day and week to week will keep you organized and on top of your blogging game. What are your thoughts? Please share in the comments below. I really would love to know.
Until next time, shine amongst the stars!
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