How do you track your income?

1 Why track your income?

Tracking your income is not only important for tax purposes, but also for understanding your business performance and growth. By tracking your income, you can see which platforms, products, or services are generating the most revenue, how your income fluctuates over time, and what expenses you can deduct. Tracking your income also helps you set realistic goals, budget for your expenses, and plan for your future.

2 How to track your income?

There are different ways to track your income, depending on your preferences and needs. Some creators use spreadsheets, apps, or software to record and categorize their income manually or automatically. Others hire accountants or bookkeepers to handle their finances for them. Whatever method you choose, make sure you have a system that is consistent, accurate, and easy to access.

3 What to track?

When you track your income, you should include all the relevant information that will help you report and analyze your earnings. This includes the date and amount of each payment, the source and type of each payment (e.g., Patreon, YouTube, PayPal, etc.), the fees and taxes deducted from each payment, the currency and exchange rate of each payment (if applicable), and the category and purpose of each payment (e.g., subscription, donation, sponsorship, etc.). Knowing this information can give you valuable insights into your earnings.

4 When to track?

Tracking your income should be a regular habit, not a once-a-year task. Ideally, you should track your income as soon as you receive it, or at least on a weekly or monthly basis. This way, you can avoid missing or forgetting any payments, and you can have a clear picture of your cash flow and income trends. Tracking your income frequently also makes it easier to prepare for tax season and avoid surprises or penalties.

5 Where to track?

Tracking your income can be done on various platforms and devices, depending on your convenience and comfort. For instance, online spreadsheets such as Google Sheets or Excel enable you to create custom formulas, charts, and reports. Additionally, mobile apps like Wave, QuickBooks, or FreshBooks sync with your bank accounts and payment processors, generating invoices, receipts, and tax reports. Desktop software like Quicken, Mint, or YNAB offer similar features as mobile apps but with more security and functionality. Cloud-based services like Xero, Zoho Books, or Bench provide online accounting and bookkeeping solutions for small businesses and freelancers.

6 Who to ask?

Tracking your income can be challenging and confusing, especially if you are new to the creator economy or have complex financial situations. That's why it's always a good idea to seek professional advice and guidance from experts who can help you with your taxes and accounting. You can find qualified accountants or bookkeepers who specialize in working with creators online, or ask for recommendations from other creators in your niche or network.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?