How to manage your blogging income and why you should make it a priority

*collaborative post*

Running a blog is fun. But it is also a lot of work, as is running any small business. Some of the tasks are enjoyable, others, not so much. Especially doing the accounts. But it is a job you really cannot afford to neglect. When it is time to submit your tax return you will be sorry you did not keep up with your accounting tasks.

Fortunately, things are easier than they used to be. You just need to get a process in place, follow it, and use the right tools.

Invest in some accounting software

If you want to you can do things the old school way and set up a spreadsheet. It still works, but it is an unnecessarily time-consuming way of keeping track of everything. A much better approach is to buy a business accounting package from a website like freshbooks.com, which is great value – you can also download a free invoice template (click the link). There is virtually no learning curve. The fact that you can have it on your phone means you can catch up with your accounting anytime, anywhere.

Keep everything up to date

It also makes it less likely that you will fall behind. You have the ability to enter things as you buy them or the moment you invoice for your work.

There is nothing worse than getting behind on your accounts. When you do, catching up always takes far longer than it would have otherwise done.

Put together some simple accounting reports

If you are relying on your blog income to pay the bills you need to know if you are on target. As well as identifying which revenue streams are bringing you the most profit so that you can do more of it. The best way to do that is to set up a simple suite of accounting reports you can generate and refer to regularly.

Why it makes sense to keep track of things properly

If at some stage you decide that you no longer want to, or cannot, continue to blog, there is no need to just let your website die. You can try to sell it on instead. There is a surprisingly high demand for all kinds of blogs and websites, at the moment. Most buyers will pay you between 10 and 25 times the monthly revenue your site typically generates. They will then rebrand, find additional revenue streams, and generate higher profits.

But you can only secure a high price if you can prove that your blog really is making that amount of money, which is an extremely good reason to keep accurate and verifiable accounts. You can learn more about selling a blog here.

For other helpful money saving tips, take a look here.

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