It’s tax day in the United States. Today, I had some conversations about taxes in the Post Status Slack (if you haven’t joined, you should!) and elsewhere.
It’s actually not that easy to track specific income for product revenues for tax purposes. Well, at least not at the eCommerce level.
It breaks down to how you do it. You can:
- Log bank transfers, from Stripe/Paypal/whatever to your bank account, and log the income without fees calculated
- Log the individual orders, and also log the fees from the merchant processor — all individually.
It gets pretty confusing. And I’m trying to figure out the best way for me. But what you don’t want to do is double log stuff: as in, log from your bank and log from you eCommerce site.
Accounting and bookkeeping isn’t that easy. I’d love to hear your story.
There are tools to help. My friend Daniel is releasing plugins soon for EDD and WooCommerce that integrate with Quickbooks Online.
Others use Freshbooks or other services. Each have varying levels of integrations with banks, invoicing, and other financial metrics.
I think this is a thing we don’t discuss enough. In honor of taxday in the US tomorrow (I know, bear with me other folks!) I hope you’ll join us in the #wpbusiness channel to discuss how you do things.