When we think of blogging, we tend to think of a personal, recreational activity. This is because, for many people, blogging can prove to be a fulfilling pastime. However, if your blog experiences success and you find a lot of traffic passing through your page, you can actually make a whole lot of money from the venture – perhaps even enough to make blogging your full time career. Essentially, when all eyes are on you and your blog, many companies will pay to advertise on your page – you will be able to give them exposure to their target demographic and they’ll be happy to pay you for the privilege. But before you start charging for ad space or product reviews, it’s important to know how you should be managing your finances as a professional blogger. Here’s a little information that should be able to guide you in the right direction!
Register as Self-Employed
When you blog, chances are you’re working for yourself. This means that you will have to register as self-employed. This lets the state know that you are going to be making money directly from clients rather than through an employer.
Know How to Invoice Clients
To get paid, you’re going to have to invoice your clients. Your invoice should include all sorts of details that let them know what you’re charging them for and how much they owe you. A clear, concise invoice is necessary – this will help to ensure there’s no confusion and should result in invoices being paid faster. You don’t want any delays! If you need your money faster than the client can pay out, you can use services like BCashflow Positive They will pay you within four hours! Alternatively, you can use an invoice reminder like Chaser that will help you improve the cashflow and get paid sooner.
Work Out Your Taxes
When you blog on a self-employed basis, you’ll have to pay your taxes independently. They won’t automatically be deducted from any pay you receive. Generally speaking, it’s best to deal with your taxes as you go along, rather than trying to gather the funds together to pay your tax bill last minute. Work them out as you go along and commit them to a special savings account or account dedicated to your taxes. This will help to ensure you don’t spend this portion of what’s owed to the government!
Hire an Accountant
If numbers aren’t your forte and taxes confuse you, or if you just don’t have the time on your hands to fill in tax assessments and tax returns, you can hand the work over to an accountant. This professional will take care of everything on your behalf for a fee. This really can lift a weight from your shoulders!
As you can see, managing your finances when you blog for a living can be pretty complicated. But as long as you know what you’re doing and carry out everything as outlined above, things should go pretty smoothly!