The 4 Common Accounting Mistakes Bloggers Make

by | Jan 3, 2018 | Contributory Post

The 4 Common Accounting Mistakes Bloggers Make

When you start a blog, you may have distant dreams of becoming a pro. Of making a substantial income from your blog, getting fantastic opportunities and spending your time working with the brands and fellow bloggers that you love. One thing you won’t spend much time thinking about is your accounts.

The 4 Common Accounting Mistakes Bloggers Make
Image Credit: Her Creative Studio

But, as soon as your blog earns money, however, small the amount, you need to start recording your income ready to file your tax return at the end of the year. It can all be a bit overwhelming, and it’s probably not one of the more fun parts of blogging, but, it needs to be done. Here’s a look at some of the most common mistakes bloggers make, which can make their accounting much harder or even leave them with a hefty fine from the tax man at the end of the year.

Not Registering

If you make money for yourself, whether it’s blogging, freelancing or from another source, you are self-employed, and you must register. One incredibly common mistake bloggers make is thinking that the small amount they make doesn’t count. Or that they can’t register as self-employed if they’ve got another job.

Register as soon as your blog is established, even before you make money. That way, you don’t need to worry about it later or rush if an unexpected opportunity arises before you are ready.

Not Invoicing

As a new blogger, it can be shocking when a brand offers you work. Many new bloggers accept anything, without giving too much thought to payment. This can leave them chasing money. Set up a template, with your address, blog name, bank details or PayPal email address, as well as any other details, such as specifying when payment is due. Then, every time you work, fill in details and send an invoice. Then, if there are any payment disputes, there’s a paper trail, and you’ve got a record of your income.

Not Keeping Track

Invoicing is great. But, when it comes to declaring your income for the year, it’s not enough. Imagine having to sit for hours going through all of your invoices to try and figure out your earnings. It could be hellish. Instead, use a Pay stub generator and a simple spreadsheet to track all of your profits. Keep them in monthly sheets, including earnings, business or company name, date and invoice number, with a total at the bottom of each page to make it easy to add up at the end of the year. This will also make it easier to prove your income if you ever want to apply for a mortgage or loan.

If you want further control of your finances, use a money diary to monitor your income and outgoings.

Not Having a System

Your accounts can quickly get out of control. You send invoices, you get paid, and you fill in your spreadsheet. Do it all either straightaway or at a set time every week. Don’t keep on top of it and you’ll soon be looking through all of your bank statements and PayPal transactions to try and find out what you’ve earned and when. Find a system that works for you and stick to it, no matter what.

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