You’ve put a lot of effort into your blog to make it profitable and your hard work is paying off. Did you know that you might be able to increase your income just by handling your money a little differently? Here are 3 tried and true ways to keep you financially healthy and possibly increase your overall profits.
1. Track Expenses. Even if financial stuff isn’t your thing, tracking expenses is one of the best and easiest things you can do to increase your blog profits. A running total of money coming in versus money going out, will help you know if you’re being profitable or even if you’re overspending.
What’s the best way to track your expenses? To start, a simple spreadsheet will do. Make sure to include the date, amount, to whom, and what for. Then stash your receipts in a folder or envelope so you’ll have them come tax time (and in case you get audited).
2. Set Aside Money to Run the Business. It seems simple enough, but setting aside money to run the business is one way to ensure you’ll stay in the green.
Make a list of expenditures that you’ll know you’ll have throughout the year – hosting fees, domain name and registration fees, shipping fees if you run a shop that sells physical product, and so on. You know you’ll have these expenditures, so set aside a small amount each month so that you’re not breaking the bank when it comes time to renew.
You don’t have to know your expenses down to the exact dollar and cent, even saving a percentage, say 10-15% from your monthly income should take care of it. No matter how you decide to save, your bottomline will thank you.
3. Hire An Expert. It’s not mandatory, but it sure can put your mind at ease. Accountants know the ins and outs of small business bookkeeping and taxes. They’re happy to help you keep track of expenses and help get your taxes done. Accountants can also help with a myriad of other financial issues. Plus they know how to list your deductions and exemptions so you’ll get the biggest return when it comes tax time. You’ll sleep easy at night knowing you’ve got an expert in your corner and you’ll have more time to focus on your blog.
Following these 3 simple tips will help you keep your blog fiscally fit as well as increase your overall blog profits.
To learn more about accounting for bloggers, visit these posts:
Can I Deduct Conference Registration Fees, Travel, and Meals?
Top 20 Items Bloggers can Deduct on their Taxes
Is My Blog a Business or a Hobby?
How Do I Legally Operate a Contest or Giveaway on My Blog?
Can I Pay My Family For Their Help?
How Do I Pay My Blog Employees?