Keeping Track of Profits

[Andrew]

I'm just curious how you guys each keep track of your funds and profits. Do you just use PayPal and look on there or do you use custom spreadsheets and update them whenever there is a change?

I'm starting to make more money in this field via coding, and I was wondering so I could best manage my money.

Regards,
Andrew

[Tyler]

Since I make most of my money privately through selling private ads, I have a whole system set up, by hand, but it basically revolves around Excel...

I need it not just to keep track of advertisers and trends and so forth, but also for taxes.. ahh.. dreaded taxes..

[Submerge]

Well, if you don't have an easy way of tracking money (ie. paypal), I'd suggest using Excel. It'll be a lot easier during tax season. Otherwise, I just use my publisher's network table they give me.

[iworkforthem]

Accounting is important... Cashflow will make or break you. Use Quickbook if you must.

[Andrew]

Well right now I don't need to keep taxes, as I'm actually only 15. However, I want to get into good habits once I start doing taxes. I started using OpenOffice Spreadsheets (basically like excel) yesterday, but I must say I didn't do a great job making the sheets. A while ago, someone posted a spreadsheet that was quite nice, I'll be using that. :)

[LaneyHosting]

Well right now I don't need to keep taxes, as I'm actually only 15. However, I want to get into good habits once I start doing taxes. I started using OpenOffice Spreadsheets (basically like excel) yesterday, but I must say I didn't do a great job making the sheets. A while ago, someone posted a spreadsheet that was quite nice, I'll be using that. :)

Same with me, no taxes because im only 16. I do keep track of private text ads through excel though, and all contexual stuff I keep track through the graphs and charts they provide.:)

[Tyler]

Hmm.. you are tax exempt because of your age? Are you sure about that? I'd have thought that everyone would have to pay taxes... can anyone confirm this?

[LaneyHosting]

Hmm.. you are tax exempt because of your age? Are you sure about that? I'd have thought that everyone would have to pay taxes... can anyone confirm this?

In American I believe if you're under 17-18 then you don't have to pay taxes unless you have a real salary type job. Of course you have to pay taxes if you work at the local grocery store and they'll take it out of your check before you even get it. I dont think web development is accounts into this, especially since im not earning millions of dollars.

[Submerge]

You have to still pay taxes. I've had to pay taxes when I got my first job at 16. It depends on your salary, every age has to pay taxes. But if you make under a certain dollar amount you're tax exempt. You guys better make sure before you get in trouble. Your age isn't a factor, it depends on how much you make.

[Tyler]

Well what I meant is, you have to FILE taxes. You have to report your earnings. You don't necessarily have to PAY, but you have to declare and report your earnings.

At least here in Canada.

And if you made under $8,000, then you don't have to pay anything. So if you're making $666 a month ore more, you should be paying something - not a lot due to a few write-off's though.

This issue really gets to me as I assume that 95% of webmasters DON'T report their earnings, or else lie and do tax fraud. Do you know how much money I'd save if I didn't do the right thing each year? Well it'd be over $20,000 this year at least. That's $20,000 I could have used on my condo or back into my websites...

Sorry, rant over, heh. Just pisses me off how so many people don't pay taxes (not referring to anyone here), and it's mainly for the higher income earners.

[Submerge]

I believe you have to be making even lower to be tax exempt in the US (unless your referring to $8,000 CAD). I know I was making $4,000 - $5,000 USD a year when I was 16 and still paying taxes. Maybe under $4,000 USD is tax exempt, but don't take my word as legal advice, best to read the income tax forms.

[LaneyHosting]

I believe you have to be making even lower to be tax exempt in the US (unless your referring to $8,000 CAD). I know I was making $4,000 - $5,000 USD a year when I was 16 and still paying taxes. Maybe under $4,000 USD is tax exempt, but don't take my word as legal advice, best to read the income tax forms.

Are you serious? Crapppppppppp. I better get on the ball

[Andrew]

I'm not saying that I'm exempt, I'm saying I'm waiting to file my taxes until I'm 16, when I should be able to get a real salary job. Right now, I only made $128 last month, and I'm starting to get more (already over $80 this month), and then when I start making more a month I'll file my taxes. I don't see why I should be risking tax evasion while it's not hard and if your making good enough money, it doesn't matter much in the long run.

So I'll have to ask my dad if there are laws for tax filing like age, amount of money, etc.

[Submerge]

If you haven't made a couple thousand I wouldn't worry about it, but check with your dad. I know age isn't a factor when filing taxes, it's the amount of money you made.

[aloksingh]

I manage the income I make by making excel spreadsheets and through a personal diary of mine. Since, I run two hobby websites, managing money is no big problem.

[davestarr]

This is an excellent, free program that works a lot like Quicken used to before it got so bloated that it became expensive and unusable. It's cross platform so good for MSFT, *Nix and Apple.

http://www.arachnoid.com/PLCash/index.html

If you don't keep track of your profits and expenses, even when small, how will you even know when you get big?

Using a program like this is well recommended for those using accountants as well. Your accountant will be happy to take your records in any format, but the junkier they are the more you're gonna pay. ... accountants have a habit of charging by the hours *smile*

For those in the US ... doesn't matter what you dad said or what anyone else said, every US citizen must file taxes if their income exceeds certain minimums. Age doesn't enter into it, living at home with parents doesn't enter in, etc. Go to www.irs.gov they have simple tools to tell you when u r required and not required to file.

For those of us using Google AdSense and other legitimate agencies that pay ... even just a few dollars ... the agency will file a report with the US IRS ... it's called a 1099R. So you really can't ignore filing, because the IRS will know even if you don't tell them. If you have money in the bank, even a few paltry dollars, the bank is required to report any interest they paid you also ... so there's no escaping it legally. You may not have to pay, but you almost always have to report. The IRS`operates like a business, they typically won't come after someone unless they can recover $x amount of taxes due ... but no one can say for sure what that amount "x" might be.

[Submerge]

google already sent my tax form to my house. Yay, so exciting lol. Well, at least it helps in not having to remember how much I made with them.