Keeping accounts of your online moneymaking?
By nancygibson
@nancygibson (3736)
France
April 18, 2007 9:00am CST
Just curious as to what methods people use to track their online earnings so that its easy to account for when you do your end of year tax returns? Often we use several different login names and it can be hard to keep a clear track of what money has come in. Do you use a spreadsheet or just rely on your Paypal (or whatever method) statements to back up your declared earnings if the tax man ever should ask to see proof?
2 people like this
5 responses
@Willowlady (10657)
• United States
18 Apr 07
I keep any bills and print out my documentation for sales and purchases. I have filled out some forms and will get 1099's. One thing I do I get the check and so keep the stubs. I think I have everything I might need once I finally make enough to tax.
1 person likes this
@rsilva708 (172)
• United States
18 Apr 07
Paperwork for purchases is important. I've worked as a self-employed person for several years, and every piece of paper is good.
I am a "hard Copy" type of person, so IU keep printouts of everyting so I have expenses of printer ink, paper, and other office supplies, so I use all of that as deductions on my taxes as well.
1 person likes this
@Willowlady (10657)
• United States
18 Apr 07
You have it down to an art. I wish you luck making all you wish to make. Hope the year ends up profitable for you.
@rsilva708 (172)
• United States
18 Apr 07
I use a excel page to track all payments I recieve. Most of the sites are going to get tax info from you if you hit $600 for the year, and then at the end of the year, you will get a 1099 form from them showing earnings. If you don't hit $600 then I don't believe you have a tax requirement on it.
@nancygibson (3736)
• France
18 Apr 07
I'm in the UK so I have to declare everything I make in addition to the normal 'Pay as you Earn' system applied to my normal employment. All my craft work, writing and online income counts towards my final end of year figure so I find it quite tricky tracking all the odd pence here and there.
@Idlewild (6090)
• United States
18 Apr 07
I keep track on an excel spreadsheet but also either write it down on paper or print out the spreadsheet. I've had a number of times where my computer failed; fortunately I didn't lose any data, but I'm very hesitant to keep any importnt information stored only on the computer.
@GuateMom (1411)
• Canada
18 Apr 07
I use an Excel spreadsheet for various things, keeping track of the websites I am a member of, with my passwords and signin names, plus a sheet for my earnings. I don´t earn enough to pay taxes at the moment, but hopefully that will all change soon! :)
@mlgb_24 (638)
•
18 Apr 07
i haven't even thought about this, lol!! i think it's a good idea..plus what the others have responded are good tips as well. it's probably because i'm still a newbee in internet money making. i'm in UK as well. i don't find loads of internet money making scheme in pounds..mostly it's all in dollars. so if you've got some sites for me to visit, i'm glad to do that. do you really need to declare all your earnings from the internet even if it's a small amount?
@nancygibson (3736)
• France
19 Apr 07
Legally, if you already pay tax (so are above the tax exempt threshold) you should declare any additional earnings at all, even money from ebay, car boot sales etc as a profit to the tax office. I know some people don't do this, but these days, any electronic payment is so eaily traced that its silly to risk the hassle of an inspection if yours in the name they pick for a random check. A lot of my stuff comes in dollars too but its simple enough to work out what the conversion rate is, and if you keep good records and declare the traceable pars of your income with complete honesty, the liklihood of the tax man asking you to account for any additional cash transactions is very slim.
If you want some other ideas, have a look at my profile and visit my blog where I've listed all the sites that pay me well.
