MicrostockGroup
Microstock Photography Forum - General => Off Topic => Topic started by: DallasP on December 31, 2017, 20:28
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So ... third year freelancing and now SP. Do you guys that do Micro alongside other business activities count the micro accounts as accounts payable (EDIT: receivable)? I rarely have sales and have only had a couple payouts, so it definitely wouldn't be a "current" asset but, an asset nonetheless. I so far haven't added or tracked the microstock accounts at all ... since I've counted payouts as business profits I should count them as receivables though I'd imagine.
In the past, I've done everything on spreadsheets and such which has been fine but, it's getting more confusing as clients grow and receivables are starting to get overlooked so as the year starts I'm thinking I should invest in some bookkeeping software or I'm kind of toying with GNUcash ... it seems a bit confusing though, and adding everything seems like a real pain.
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When the money gets into my bank account, that's when it is reported.
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Accounts payable? Receivables? You're making it too complicated. As Sean said, when it's paid out it's income. If it's a sale made but not yet paid to you, then it might be accounts payable for the agency, but for you it is nothing - if a company goes belly up before making a payout, then any credits you have might not be receivable. Except for FT, who will send you a tax form with all earnings regardless of payouts. For them I always try to remember to request a payout during the last two weeks of the year so it is more or less up to date.
I just include the tax forms from the agencies that provide them, and for the others a copy of my Paypal (or whatever) statement with whatever they paid me. Anything credited but not paid doesn't count, except with FT. And of course keep track of any foreign tax paid so you can get a credit if you deal with DACS or Canva.
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I tried to explain a couple of times to the tax "man" (actually once it was a man and another time it was a woman) how stock business - and internet in general - works. Although they said they understood everything they still couldn't figure out where my cash register was. They are government workers, hiring is based on quotas, so I don't expect much. I wouldn't even know where to start if I wanted to explain WTH is Fotolia credits.
So I just go by the Sean's money-in-my-pocket-is-money-earned principle. It's simple enough and I never had any run-ins.
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Awesome, thanks fam.
Yes, I have to have accounts receivable ... They're the only way to keep track of the money. lol Everyone else pays within 30 days regardless of the amount. Microstock is just kind of ... there right now ... sitting.
Accounts payable? Receivables? You're making it too complicated.
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When the money gets into my bank account, that's when it is reported.
Exactly.
It'd be too complicated and time-consuming to keep track of every single unpaid sale on every agency, if not impossible. You can get refunds, clawbacks and accounting errors from the agency.
If the tax collector is gonna say I'm doing it wrong, I'll happily invite him for a cup of coffee and a place at my desk to manually investigate thousands and thousands of individual sales. He'll be gone as quick as he came.
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When the money gets into my bank account, that's when it is reported.
Exactly.
It'd be too complicated and time-consuming to keep track of every single unpaid sale on every agency, if not impossible. You can get refunds, clawbacks and accounting errors from the agency.
If the tax collector is gonna say I'm doing it wrong, I'll happily invite him for a cup of coffee and a place at my desk to manually investigate thousands and thousands of individual sales. He'll be gone as quick as he came.
Yeah, that would be quite a task.
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My CPA (in the USA) is OK with recording the monthly cash deposit to the bank account as a lump group of sales. If the IRS comes calling, he will have to help defend the method.
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Bottom line report all of your income and you will be fine. I give all my income statements and earnings to my accountant and let him
worry about it!