Yakezie.com - Topic: PayPal and accounting https://yakezie.com/forums/bloggers-lair/paypal-and-accounting/ Simple:Press Version 4.5.1 Eric - PersonalProfitability.com on PayPal and accounting https://yakezie.com/forums/bloggers-lair/paypal-and-accounting/#p93188 Bloggers Lair https://yakezie.com/forums/bloggers-lair/paypal-and-accounting/#p93188 For those that use Outright, does the free version do everything you need or do you pay for pro?

]]> Tue, 14 May 2013 12:16:27 +0000 Eric - PersonalProfitability.com on PayPal and accounting https://yakezie.com/forums/bloggers-lair/paypal-and-accounting/#p93187 Bloggers Lair https://yakezie.com/forums/bloggers-lair/paypal-and-accounting/#p93187 I use Quickbooks Pro and just enter the net amount.

]]> Tue, 14 May 2013 12:15:31 +0000 Michelle (Making Sense of Cents) on PayPal and accounting https://yakezie.com/forums/bloggers-lair/paypal-and-accounting/#p92987 Bloggers Lair https://yakezie.com/forums/bloggers-lair/paypal-and-accounting/#p92987 I use Outright as well and love it. It works very well.

]]> Mon, 06 May 2013 11:52:35 +0000 sooverthis on PayPal and accounting https://yakezie.com/forums/bloggers-lair/paypal-and-accounting/#p92978 Bloggers Lair https://yakezie.com/forums/bloggers-lair/paypal-and-accounting/#p92978 Justin – My accountant always tells me it's okay to differ from Paypal's 1099-K as long as I have the documentation to back it up. If you use something like Outright, you can categorize your payments to bloggers as deductible contractor expenses – I think that's perfectly justifiable given the nature of the transactions – and it will adjust your business income accordingly. (Again, not an accountant.)

]]> Mon, 06 May 2013 07:23:53 +0000 MoneyIsTheRoot on PayPal and accounting https://yakezie.com/forums/bloggers-lair/paypal-and-accounting/#p92976 Bloggers Lair https://yakezie.com/forums/bloggers-lair/paypal-and-accounting/#p92976 Ill have to give Outright a look this week... that was the biggest pain with my taxes this year.  I do my own, but even if I didn't, all the work would've been preparing proper billing documents for an accountant anyways. 

 

Paypal says I made twice as much as I did, mainly because of my passthrough of payment to bloggers after my commission...

]]> Mon, 06 May 2013 05:27:24 +0000 Mike - Saving Money Today on PayPal and accounting https://yakezie.com/forums/bloggers-lair/paypal-and-accounting/#p92975 Bloggers Lair https://yakezie.com/forums/bloggers-lair/paypal-and-accounting/#p92975 I use Quickbooks to track income and expenses and I use two lines.  The gross amount in and then a separate entry out for the fees.  Using only the net amount doesn't give you the full picture and I'm sure it wouldn't be considered standard accounting practice.  

]]> Mon, 06 May 2013 04:53:00 +0000 sooverthis on PayPal and accounting https://yakezie.com/forums/bloggers-lair/paypal-and-accounting/#p92964 Bloggers Lair https://yakezie.com/forums/bloggers-lair/paypal-and-accounting/#p92964 Take a look at Outright - it's a free service that will pull info from your Paypal account and automatically separate out the fees. If you opt for the paid account, it does your entire Schedule C worksheet for you, and all you have to do is copy over the numbers when you file your taxes. I have my Paypal, business checking, and business credit card all pulled into Outright and I can't think of an easier way to make sure everything is accurate.

I'm no accountant, but I would definitely think that ingredients are part of the blog and therefore a business expense. Hopefully one of the actual accountants will chime in, but if it were me, I'd take the deduction without a second thought.

]]> Sun, 05 May 2013 16:33:34 +0000 Edward Antrobus on PayPal and accounting https://yakezie.com/forums/bloggers-lair/paypal-and-accounting/#p92962 Bloggers Lair https://yakezie.com/forums/bloggers-lair/paypal-and-accounting/#p92962 When you receive payments from Paypal with fees deducted, do you put the gross amount and add an additional entry to whatever you use to track your income & expenses for the PayPal fees, or do you just add the net amount? Come tax time next year, I want the amount I tell the IRS that I made to be the same that PayPal says that I made. If PayPal's 1099 is a couple hundred dollars higher than the amount I give, that could lead to some problems!

 

Also, does anyone know if I can deduct the amount I spend of ingredients I use to make recipes for my food blog?

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