The Porch Light copyright by Revka (2006-2010). All rights reserved.

Wednesday, May 09, 2007

More money means more work

As I do more work through RS Designs, I am finding that bookkeeping for this business is different from my other ventures.

My piano lessons are fairly easy to handle; I have no expenses for the lessons themselves. They are pure profit. My only expenses are purchasing music for students (I am always reimbursed by them) and the rare music purchase for the studio.

It is also easy to keep track of my income from Payu2blog. My only expenses there are the fees PayPal deducts from their payments. (That really aggravates me, but I guess PayPal has to make money from their service, too.) I'll receive a 1099 from payu2blog at the end of year so I just need to keep track of my income as a precautionary measure.

Not so with RS Designs. I have to log free headers as advertising expenses, note all PayPal fees, record istockphoto.com credits purchased for image downloads, track my income (of course), and save customer contact information. I know there would be a lot more to track if I were a larger business, but, after my simple ventures, this is feeling a tad more complex. I'm almost tempted to invest in some reporting software, but in reality my business is small enough for me to create my own forms and reports without too much trouble.

If you own or run a business, how do you handle finance reporting?

5 comments:

Justice Fergie said...

it's tough to figure out all those things on your own. my husband has a great arrangement with our account: the accountant does our taxes/deductions, etc. in exchange for my hubby designing and maintaining his website - it's great!

Karen is Thrifty said...

Justice, that is a great deal. Less headache for sure.

Revka, Don't forget that you can claim your monthly internet expenses too.

Revka said...

That's a wonderful arrangement, Fergie!

Thanks, Karen. I guess I need to decided whether to claim them for my paid assignments or for RS Designs. I think I need to talk to Robert's relative who does our taxes. :>)

Julie said...

I keep track of my business expenses with excel spreadsheets. I have one for income and the other is for expenses. The columns represent tax categories for easy access for year end. I also use Quicken for business, but unfortnately I am only using that to create invoices and balance the business check book\CC accounts. I am not really using it to it's full capacity.

If you need help creating spreadsheets - check out the library for books on bookkeeping for small businesses.

Good Luck!

Revka said...

Hi, Julie! Thanks so much for stopping by and for offering your valuable suggestions. That is a great way to manage the bookkeeping. I really appreciate your sharing your ideas, and I hope you will stop by often.