What Bloggers Need to Know About Bookkeeping
Running a blog is fun and creative, and it’s so easy to set up these days that just about anyone can get started. If you’re running a blog as a business venture, however, a whole new level of responsibility opens up. Bookkeeping is one of the most important aspects of being in business, so here are the basics you need to know.
Open a Business Bank Account
Keeping business money separate from personal money is important for two
reasons:
● It makes bookkeeping easier, since all the transactions in your business account relate only to your blogging business.
● It’s faster to update your business records because you’re not wading through personal expenses.
There’s a third reason too: if and when you decide to use professional accounting services such as an accountant or bookkeeper, they will have access to your personal finances if you use your everyday bank account for your business records.
As a business blogger, you should register as self-employed with HMRC and file a tax return each year whether you make a profit or not, and whether you hit the tax threshold or not. A business account simplifies the process. Most banks will give you a year or more of charge-free banking, so in the beginning, it won’t cost you any extra.
Save and File Receipts
Receipts (for both purchases and sales) and invoices are the backbone of your financial paper trail. They are the records you must keep to prove you have made and spent what you are claiming.
These days you don’t have to keep all paper receipts as HMRC will accept digital copies. Scan or photograph paper receipts and log them safely in an appropriately named file either on your computer, in the cloud, or backed up to an external drive. An external backup is a good idea however else you store them.
Keep Bookkeeping Simple
Simple systems work best for small businesses. You could use a notebook, a ledger from a High Street stationer, an Excel spreadsheet or an online accounting package such as Quickbooks or FreeAgent. There are many more online accounting services that help sole traders keep simple books. Avoid anything complicated that expects you to have records for VAT or Payroll. If you don’t need it, there’s no reason to complicate matters.
Get Some Professional Help
When your blog gets busy and demands more of your time, you may benefit from some professional help with keeping your books up-to-date. Bookkeepers will work with you on a part time basis, offering as many or few hours as you need each month. A big advantage in using a professional bookkeeping service is that you know your books are accountant-ready at the end of the tax year. Depending on where you are based you may want to look for someone who has banking certifications.
To start, you may decide to take care of your own tax return. However, an accountant also has the experience to offer business advice if they see areas where you could use money more efficiently, or do things differently, so there are advantages there too.
They’ll also make sure you’re claiming all your allowances, not paying too much tax, and you’ll avoid penalties for late submission. Turning your blog into a business is a logical next step for many bloggers.
Organise your bookkeeping into a simple system that’s easy to update, and blogging is probably one of the most fun and rewarding ways to be in business today.
This is a collaborative post.
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Some great tips on this blog about book keeping, I would have never even considered book keeping or taxes for having a blog, it’s pretty crazy how much work must go in to running a blog! 🙂
Doing the bookeeping for my business now is the least favorite thing about blogging. I use excel and update as things come in or go out. It does help me keep on track. I just did taxes and it took hours to work through everything. I swear each year it will get easier 🙂
But I always do know where I stand with income and expenses with my excel spreadsheet, so it’s a good thing!
Thanks for your tips and stay well!
I would never had thought about having to pay tax if you have a blog, there is a lot that goes on when it comes to blogging
There really is so much sometimes I feel a bit overwhelmed lol.
Very useful post, I didn’t realise that there was so much to do when your blogging, thanks for sharing this.
*you’re*
It is amazing all the things that go on behind the scenes.
Great tips! This is super important, especially around tax time.
Most definitely it can all be so stressful if you aren’t ready.
Maybe one day I’ll have a more successful blog and I will need a bookkeeper! This post was very informative so I know where to go if I reach that level, thanks for sharing!
I am sure one day you will get there!
Awesome tips! I personally enjoy using spreadsheet nowadays. I used to just write them down and lose so much time when I need my numbers down. Thank you for this.
Spreadsheets are a must aren’t they, they really help you keep on top of things.
Ah Sarah you’ve read my mind. My fella has just gone freelance and I think this is the thing he’s most confused about. I’ll send it on to him. Thanks for the advice!
I am so pleased it is going to be of help to people 🙂
I have to admit that I have always done it myself but I am tempted to hire someone to help me as its a job I procrastinate over
I am the same for sure, I often just sit and think about it rather than do it.
It’s so important to have a good routine and plan in place for bookkeeping. It can get very messy otherwise.
It most definitely can for sure! Definitely good to have someone on hand.
This year was my very first year set up as a business. I kept every reciept and I was able to do my own taxes easily. I do however need to set up a business account to make it easier.
I think it depends how it feels in yourself to how you do and if you need help. Great so many can do it themselves.
Wow this blogging thing is beginning to sound like work.
Haha it most definitely is work, I think a lot of people don’t realise how much work does go into it.
It’s so important to really keep track of everything in case HMRC want to see your records.
Most definitely you never know when they may come a-knocking.
Thank you for the very helpful tips. If only my blog were that successful!
You can get there just keep on going!
I have been self employed for yonks.. pretty much sine I left university and yet i still haven’t established a great way offing my books. Don’t get me wrong I manage it at the end of the tax year but it takes me a while as I sift through all the accounts I have. I really do need to do it in a smarter way to be more time efficient.
It is a pain isn’t it! I have managed to get things in a right mess before.
I so need to open a business banking account as I have been mixing for the last few years and its getting annoying. I do have paypal but then transfer funds to my personal account.
It’s well worth doing it honestly. Helps keep things all clear from each other.
Great tips! I need to organize my business finance and start recording my income and expenses accordingly.
Good luck! It is something that can seem quite tedious but most definitely worth it!
I’ve always done my own bookkeeping but I do think if you’re unsure or not confident that employing help is always a good idea x
Most definitely I think it is different for everyone but knowing you can get help is a big thing.
Great tips! We’re hobby bloggers but this information would come in handy if we were ever going to try and make money or turn it into a business venture. We’d need someone or a program to look after our books x
Good luck if you do decide to go down the monetizing route 🙂
These are all good points. I think getting help from a professional is a good idea if you don’t have enough time to do bookkeeping.
It really is a good idea, especially if like you say you just don’t have the time as it can be time-consuming especially if you get into a bit of a mess.
These are really good tips and something I really need to get on top of…I don’t even have a separate business account at the moment which is something I really ought to sort out. Thank you.
I think as long as your sole trader you can use a personal account but it should be one that’s separate from your others, that said I opened a business one last year.
So useful! I really need to be more organised with mine – I am terrible!
It is so easy to just fall behind with it isn’t it.
I have been working on being more organized! So these are great tips!
Good luck with being more organised! You can do it!