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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It’s so important to stay on top of things throughout the year, more so when you use your blog as a business. My friend learned that less this year. She wasn’t tracking all her expenses.
It is so hard when you do that isn’t it – then you have to try and sort it all and it’s just a nightmare.
I’ve been thinking about opening a blogger business account. I need to stop thinking about it and start doing something about it. It would make my life easier.
I opened one last year and it has made things so much easier.
These are great tips. I like using a spreadsheet and my Paypal account. It helps me keep track of everything. I don’t like searching for everything around tax time and getting stressed out.
It is great to have a spreadsheet and always make up an invoice I think is another help.
Great post and SO helpful! I have an accountant thank god or I swear I’d be clueless!
Accountants can be such a great help can’t they!
This is such a great idea! When I started my blog I had no idea i’d actually make any money…so I never looked into hiring someone to help with bookkeeping!
It is such a different world isn’t it when you start blogging so much to learn!
This posts contains some useful advice about bookkeeping that would be helpful to any other kind of business, plus the blog specific info. A must-read for anyone thinking of turning their blog into a business.
I am so glad people are finding it useful!
I have a background in bookkeeping so it will be a little easy if I would ever need it. These are good points.
Oh now that is a lucky place to be in!
You gave us amazing tips. For bloggers, Bookkeeping is really needed. I totally agree with you, to separate personal from business money. I think I’ve done everything – open a business bank account, save and file receipts, keep bookkeeping simple, except asking professional help. Mine is a small business so I’m doing bookkeeping myself.
It really is you need to make sure everything is all filled away safely.
Great tips, these! Bookkeeping is one of my least favourite things about being self-employed, but it needs to be done!
Hands up I am with you I sort of do it once a month and then grumble about how I let it build up!
My blog isn’t earning yet but I know this will be useful for me in the future. I wish and hope I will need a book keeper too.
Good luck with your blog and I hope one day you will need a book keeper!
There is a lot to it
I’m pretty bad at bookkeeping, so thanks for this post! I need to look into the professional services you suggested here.
Good luck, I hope it helps you find someone who can help you.
This is such great information! A lot of people ask me about this when they first start. I’ll pass them over here 🙂
Aww thank you so much that is so kind of you.
There’s nothing like keeping everything organized and having a system that allows you to keep track of everything that you need to keep track of. I think bloggers should definitely consider this especially those who are earning through their blogs.
Most definite you never know when you will need to fall back on all the information.
Most definitely there is a lot that goes on when it comes to blogging!
I like to use excel spreadsheets. It keeps the paper clutter down. Great tips for business bloggers here.
I have to admit I also use Excel spreadsheets to help keep me on top of things as well 🙂
I haven’t reached book keeping part when it comes to my blog ut these are really great and useful tips when time comes.
Good luck for when the time comes, there is so much to think about for sure!
Some great advice here! I’m really not very good at the book keeping side of things.
I find it quite boring and I let it mount up and then do it all at once which isn’t the best idea.
I don’t think my blog is big enough to need a book keeper! I do write everything down though, just in case, so maybe this would come in handy!
You never know when it will all come in handy do you? Always worth having it close to hand.
Interesting post, though I wish my blog were successful enough that I needed a book keeper, lol. There’s some great tips here though, so thanks!
Aww you never what the future holds, just keep on working.
A very formative post with great tips, I didn’t realise blogging had so many different aspects to it xxx
There is so much that goes on people don’t see haha! It’s fun to share some of it for sure.
Interesting blog, thank you for sharing. this is essential for the present and future.
I am glad you found it interesting, I think we all need to keep on top of our books be it by ourselves or with a bookkeeper.
This post has some great advice, thanks for sharing. When I decided to go freelance I spent a lot of time getting all my records etc set up so I know how important it is to be organised!
It is a must isn’t it – definitely something not everyone is ready for.
Very helpful advice, thank you. Even if it feels over-the-top for something small-scale, it’s a good idea to get your system in place right at the start,
Most definitely you never know what is going to happen so having a system in place is a good thing.
I never knew there was so much to it!
I think a lot of people just think we sit and write and that’s it.