When you first get into the world of blogging, there are a dizzying array of financial decisions that you have to make. At first, it seems like a harmless game. You’re just doing it for fun because you love writing.
But over time, things get complicated. As you start earning more money, your tax liability begins to rise. Eventually, you find that you need to prepare accounts to keep the authorities happy. It’s a nightmare.
In this post, we take a look at some simple money tips for busy bloggers. Here’s what to do if your blog becomes a financial success.
1 – Set Up A Separate Bank Account: one of the tips for bloggers
Figuring out which money came from your blog and which came from other sources can be a massive hassle. Blog income tends to arrive in dribs and drabs from all kinds of sources. There’s advertising, on-site sales, and subscriptions.
Figuring out your blogging expenses can be even more bothersome. There are so many tiny transactions that toting them all can take the better part of a week.
The solution to this is to have an entirely separate bank account for your blog. This way, any money that goes out is an expense. And any money you receive is revenue. It’s just a matter of getting out your calculator or sending the statements to your accountant.
2 – Learn About Quarterly Taxes
The government is desperate to get as much money from you as early as it can. That’s why when your blog reaches a certain size, you may have to pay quarterly taxes.
Quarterly taxes are a way for you to spread the cost of your tax over the course of a year. While you’ll still have to pay funds by a certain deadline, spreading it out can help you have more money on account. That way, you don’t wind up having to pay a massive bill at the end of the year.
Firms like Xperion talk at length about the need for proper tax planning. You don’t want to get into a situation where you have to pay massive bills out of pocket.
3 – Learn About Deductions
Deductions – also called expenses – are costs that you can subtract from your taxable income, reducing your overall tax liability.
Deductions are tremendously important. You shouldn’t have to pay tax on income necessary for running your blog. That’s just unfair – especially since virtually every company on the planet deducts expenses.
As a blogger, you may be able to deduct all kinds of expenses, including the cost of internet, utilities, and computer equipment. You’ll also be able to subtract any money you spend on promoting your blog.
4 – Don’t Forget To Report Your Non-Blog Income
When you file a tax return, the authorities don’t particularly care about where you’re bringing in money. Instead, they just want to know how much.
So when you come to the filing, don’t just count up the money from your blog and call it a day. Instead, total all your income, including money from other side hustles or your regular job if you’re still working.
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