If you are a blogger or creative entrepreneurs you should put a system in place for tracking income from day one.
From the moment I made my first dollar as a solopreneur, I grabbed a notebook and wrote down the most important aspects of my revenue sources. My first source of income was from referrals. I’d refer my readers to resources I used and loved. In return, I’d make between $0.80 and $8.00 for smaller referrals and as much as $250 for larger ones. Every time I earned revenue, I’d write it down in a notebook. When it paid out, I’d write that down too. At that time my expenses were small, but I also kept track of them. I mean, how else would I know if I was at a profit or loss.
Whether you make $50, $500, or $5,000 a month, good accounting habits are too important to ignore. Without accurate records, you’ll never have a clear picture of what you’re actually making.
From month to month you should know what you’ve paid out and how much you’ve earned after expenses. The best way to track income is digitally using a spread sheet. I taught a live class that walks you through how I set up my spreadsheet to track multiple revenue streams.
As soloprenuers you don’t need complicated systems to track your income. You need something that’s streamlined and simple. With my system I’m able to track income, revenue, pending payment, expenses, year-to-date earnings and income goals. I designed the system with creative-preneurs in mind and the goal was to make tracking income and reporting it at tax time stress free. Everything your tax preparer will need is right there in your excel spreadsheet. At the end of the year, I print it and bring it with me to my tax appointment. After I finish filing my taxes, everything goes in my tax return filing system.
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