One of the unique types of modern livelihood made possible by the internet is blogging. There used to be a time when people dreamt of writing for their favourite papers and magazines, having their name printed below the title of their self-written article, reaching a lot of audience in the process in the hopes of gaining fans and like-minded supporters.
Nowadays, people do not even have to look far to post their 500-word opinion article on a relevant topic. They may simply go online, compose their whole piece, and wait for the views to rack up. This helps them gain followers, well enough to set them for a regular revenue stream.
It all looks simple until you realise that even the world of blogging touches on the complicated subject of accounting. This is important, especially if you want to familiarise yourself with earning through this modern freelance work.
If you happen to be one of them who would like to learn more about this concept, look no further than the following pointers we’ve listed down below for your future reference.
Consider the Taxes in Your Revenues
Being a blogger has a lot of perks. Suppose you’ve decided to take on this livelihood route, so you began to accept sponsored ads, events features, and paid articles. In that case, you may need to organise your earnings to track all of the numbers you’ve been accumulating over time. This may seem like a waste of time at first until you realise that you still need to pay taxes for all of the earnings you’ve had along the way.
You wouldn’t want to get in trouble with tax collectors, after all. A simple spreadsheet will suffice since not all bloggers are understandably accounting majors, so they may need the help of automated computations to do most of the calculations for them. You may even get the help of accounting services online, just to be sure.
Take Note of the Expenses
Blogging isn’t just about earning; you also have to consider the expenses that go along with it. If you’re planning to be a stay-home blogger, you have to pay for your WiFi and electricity, those of which can be settled through your monthly utility bills. However, suppose you want to be a travel blogger. In that case, your expenses may be more significant since you have to worry about travel fare, accommodation fees, food, equipment rentals, car rentals, and other essential things you may need to accomplish a specific writeup.
Expenses can be challenging to keep track of, but knowing what you must pay for and the taxes that go along with them will ensure that you can budget appropriately, well enough to avoid any shortage of funds. You also make sure to pay your dues as a responsible citizen!
Deduct All the Freebies and Other Incentives
The best thing about being a blogger is that you’ll likely receive freebies from your clients. Whether it’s the launch of a new soda, the introduction of a new pair of sneakers, or the press conference of an upcoming superhero movie, you will always be treated to free items that you will need to keep as promotional merchandise for the event in question.
While some bloggers consider this as payment, most would still ask for fees in exchange for the online promotion that they will be doing on their webpage. Clarify this with your clients so that you can deduct any freebie and incentives from your invoice computations.
Blogging is often considered one of the most viable jobs for people who would like to voice their opinions through trivial write-ups and comprehensive articles. While it may just look simple on the surface, there are many things to consider while going through this livelihood, and one of the most crucial things is the numbers.
Understandably, not everyone is an accounting major, but knowing what you should include in your simple spreadsheet is a matter of familiarising yourself with the possible taxes and deductions. By taking note of the tips above, not only are you keeping tabs on your expenses as a blogger, but you are also avoiding any instance of tax evasion and overspending.
If you are looking for an accountant for bloggers to manage and calculate all your numbers for you, look no further than The ECommerce Accountant. We offer a variety of expert advice and services that are tailor-fit for all online businesses and influencers. Contact us today to learn more!