How to Keep Track of Your Blogging Income
Before I started my blog, I worked as an accountant in public practice in Alberta and Ontario. I left the workforce in 2007 because of chronic pain, but I still did people’s taxes if they asked me too. Now that I’m blogging AND earning an income (finally!), I understand how important it is to keep good records. It’s not only tedious to figure out your income and expenses from a box of receipts, but also if you are paying an accountant to do your taxes they WILL bill you for the time it takes them to go through your stuff.
It’s just easier when you finally sit down to do your taxes to have everything all ready done and all you really have to do is plug in your numbers to your tax forms. You don’t need any fancy accounting programs either to make it work. Just use a spreadsheet program like Excel or do what I do and use Google docs (free).
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Recording Your Monthly Income
This is very straightforward. I use cash basis accounting meaning I record my income when I actually receive the cash in hand. This means I receive a cheque in the mail or a deposit in my Paypal account. ย I record in whatever month we are in- who the payment is from and the net amount received in the appropriate column (Paid Posts, Advertising, etc).
At month end, I take a total of all the columns for that month and then I know how much I took in for that particular month.
Keeping Track of Who Owes You Money
I used to rely on my memory and I’m sure that I got ripped off because of it. Now, I have a separate sheet in my Income spreadsheet called Accounts Receivables whose sole purpose is to keep track of who owes me money. Think of it like your own little collections file. Now I know most of us like to be paid upfront, but sometimes that does not happen. This sheet will help so you don’t have to rely on memory.
After the post or service is completed, add the date, company name, description of service and amount owed in the Accounts Receivable sheet. This is a running list that can be added to throughout the year. As someone pays you, you just delete their information from the list. At month end, I follow up via email with people that haven’t yet paid over 30 days. Then I record in the Notes section the date I emailed them.
Figuring Out Your Income at Tax Time
In Canada, March & April is considered Tax Season and is when we are busy calculating what we made the previous year. I use the Year End Totals sheet to take the total off each of the monthly sheet to add them together to come to the amount I made for that year. Then it’s a matter of plugging that income into the appropriate tax form. I don’t have to scour bank statements or Paypal statements.
Blogging Income Spreadsheet
I’ve created a Blogging Income Spreadsheet that you are welcome to make a copy of and use to keep track of your own income. Just go to File and then Make a Copy and name it something that appropriate for you like YourBlogName 2012 Blogging Income. Start it now and at least you will have a few months organized and only have to do the previous 8 months.
How do you currently keep track of your blogging income?
Great tips. Thank you. I really need to set up an accounts receivable spreadsheet. It’s on my list of things to do!
This is absolutely amazing, you are a gem! Thanks for sharing, I love the simplicity of this yet it is so important. I am going to share with others, thanks again!
Glad I could help!
This is kind of awesome, Stacie! Thanks!
This is a great idea!! I have been lax about tracking my income since it is so sparse, but I will set this up so I am in the habit. Thanks for sharing!!
teressa, i was thinking the same thing! this comes at a great time to make it a good habit, rather than having to look backward.
thank you for sharing these tips!
Thanks so much for posing this!!! I really haven’t recorded anything since it hasn’t been that much but it’s good to start now so when my blog really begins to earn income I’ll be prepared. Thanks again!
Thanks so much Stacie! I track mine each month too but for some reason, my brain flaked on the year end totals part..lol. Reading this was a great reminder!
Great tips – thanks so much, Stacie! I am finally making a little money this year and definitely need to keep better track!
I use a similar form, but it’s not so in depth as I don’t make a whole lot yet. Thanks for the great tips though! What kind of set up do you use for review items?
I use Google docs for everything! It’s easiest for me to do spreadsheets.
Thank you so much for sharing your spread sheet! I have been meaning to set one up but it’s been so long since I messed around with Excel that I have just been putting it off.
Hey Stacie,
I’ve been earning extra cash from blogging a for a little while now.
A little while actually being about 3 years!
So far it’s all been paid into my Paypal account, but now seems like the time to declare all this to the tax man before I’m in too deep.
I’ve been speaking to SJD accountancy in my town, but I wanted to ask another blogger about this (hence finding your post in Google). Is there a certain level of income I need to get to before I need to declare these earnings? Do I need to form a limited company, or can I just be self employed?
Many thanks
Adam
I’m just self-employed and claim all my income on my personal taxes in Canada. I’m not in a high enough tax bracket to make it worth my while to incorporate since its very expensive to do that here.
Very cool! I use google docs for everything, too. Love it. I started at the beginning of the year keeping track of income and expenses. I like the idea of the accounts receivable sheet, too. Great tips!
Thanks! That AR sheet is so handy! Saves a lot of headaches and stress.
Wish I would have found this 8 months ago! But happy to have it for the start of next year!
Great advice! I use outright.com all year round and it has helped me to really keep track of my income
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Aaaarrrrgggghhhhh – smacking myself upside the head – I’ve intended to keep track of all my blogging income, expenses etc. throughout the year, instead of waiting till the last minute. I’ve failed miserably, but will definitely get started NOW with the help of your spreadsheet.
Thank you so much for sharing!
Stacie! You are a life saver! I’ve been trying to create my own system and it’s just not been working the last few months. This spread sheet is much easier to follow! thank you!
This is great. I am not good at all in keeping track of all my business income/expenses. I use my PayPal, check ledger and receipts. It is not very efficient and the last two years we’ve had to get an extension due to my procrastination. I start the year off with good intentions but it slowly unravels. I just spent 4-6 hours over Labor Day weekend getting everything ready for my husband.
I definitely need a good system and have tried doing something like your excel sheet before, the thing is I wouldn’t be consistent. ๐
I have a note book I write down my payments I receive and who/why it was from. I started doing it this year and it is nice to see how much money is made each month. I take a percentage off money when it goes in to hold back on taxes so I don’t have to pay in. Seems to work pretty good. ๐
Great spreadsheet by the way!
I also use a spreadsheet split into 4 tabs. Income US, Expenses US, Income Cdn, Expenses Cdn. there is a column to say what each is for. My accountant then assigned them to their proper spots for income purposes. She said for not being an accountant my spreadsheet was great as it had everything she needed. I am going to add an A/R tab though. I always forget who owes me what.
thank you Stacie! I’ve dl’d the doc and will start using this today!
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I am so glad I found this today, this is the motivation I need to get that A/R going! I have been going with all that in my head forever. Thanks so much!
Thank you so much for the spread sheet. This will be so helpful. I made my first $50 this year so that has not been hard to track. But I am sure the spreadsheet will come in handy in the future.
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This is great thanks for sharing. Do you record product values for merchandise received? I know some do & some don’t what are your thoughts since you have had an accounting background. Thanks in advance.
I don’t do that many reviews myself anymore and the ones I do I don’t record. They are never very much in value though. I’m not sure how it works in the USA though. I’m in Canada.
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This is exactly what I’ve been looking for for a while- and of course procrastinating about. I’m terrible when it comes to tracking money, as I’m sure a lot of bloggers are, as it’s one more thing to do in the myriad of new things we’re doing as bloggers. Thanks so much for sharing with us!
I do the same thing you do to keep track of income and expenses except I keep everything on one sheet. I have a column for the date, name of the company and/or rep, product and/or money owed, date paid, how much paid. Money for things I paid to people is in red (meaning negative) at the end of the year, my spreadsheet automatically totals the income vs expense.
This is very helpful for me. I’ve not tracked because my blogging income is so small but I should get in the habit of doing it. Thanks for the spreadsheet!
Thanks so much for writing this! I’ve downloaded your spreadsheet. This is great! I’d never kept track before.
Lesley
bytheporchlight.com
ohmygoodness Thank you for this! And thank you for sharing your template!!
Oopsies, I do paid posts and they send me the tax info, but never really put much thought into other things I get paid for like through Paypal. I will look at your spreadsheet and should start keeping track.
Thanks for sharing!
Excellent article and extremely useful ! Thank you for taking the time to document and share templates.
I really need to stay on top of this in 2013! I think when you really start treating your blogs as a business and keeping good records it clears your mind to find new business ventures and creative ideas!
Thanks so much for sharing these tips! I will be sure to incorporate them in 2013!
Great tips. It is easy to lose sight of the importance of keeping track of earned income.
Thanks so much! I tend to overcomplicate any spreadsheet I create. The one you’re sharing is exactly what I need.
I have yet to make money from my blog, but I see the potential as I continue more work into my blog.
So I do hope to be able to use these tips in the near future. ๐
Thanks for sharing!
Thank you for sharing your template. I just launched my blog a few months ago so I have all expenses and no income. I am thrilled to find your template so I can track my losses for income tax writeoff purposes. Thank you for sharing – I didn’t know where to begin!
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Hi, paying you a visit through The SITS Girls. Thank you for the post, it’s very useful to see it all organized that way.
That is really great information! I’m fairly new to the blogging world and haven’t made any money as of yet!
AWESOME post, Stacie! Thank you for this. This might be a silly question but do you actually print out the spreadsheets and give them to your accountant or do you just keep them on hand in case he/she needs the details? This is my first time doing blogging taxes and I am SUPER nervous! Thanks! XO
I do my own taxes since I used to work in accounting. I would print them off though and bring them into the accountant if I was having them do them for me.
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Stacie you are just the girl I’ve been looking for! I’m running a blog in Alberta and was undergoing the difficult task of finding a bookkeeper/accountant who knew something about the blogging industry and how to record said expenses/income in Canada. This post was very helpful and I’ve downloaded your Blogging Income Spreadsheet. Would you be available as a resource for any questions that I may have in this regard? If so, could you email me your rates? So glad to have found you via SITS Girls!
I could try! Note that I’m not an accountant anymore so I may not be able to answer everything.
Hi Stacie! Was trying to use your spreadsheet but it tells me that I need to request edit access to use it. All of the options are grayed out except Data. Thanks!
It’s set to view only. Did you make a copy of it?
So happy I found this article! Just made a copy of your template and really excited to use it and start fresh this year!