How do small businesses track income which hasn’t been invoiced?
Money coming into small businesses isn’t always through invoicing. Entrepreneurs are very creative in earning income in other ways, such as rent for office space, selling at trade fairs or interest received from dividends. All this income needs to be recorded and easily tracked, so when it comes to tax time it does not become a big chore.
The good news is that we have all the answers to your non-invoiced related income questions.
What is “Other” income?
Whether or not you’ve created an invoice, any form of money coming into your business is considered income. Here are some examples:
- Money received from renting your property or land.
- Products you might sell over the counter or at trade fairs.
- Interest from dividends or a business bank account.
- Jobs paid for by cash.
- Commission received from selling other peoples products.
- Value of products or services received as payment instead of cash.
- Income from selling your assets.
It’s very important to not just rely on a single service, product or a few clients when you run a business. To ensure survival and growth, small businesses need to diversify their income to secure their future. Having a finger in every pie will help secure success for many years to come. Just make sure you record and account for everything however small the income may be.
Why is it necessary to track other income in your accounting software?
When it comes to your taxes, every penny or cent counts, so make sure that you record all income including the odd cash job here and there, rent payments or sales on Shopify or Woocommerce. As a small business owner, you’re responsible for tracking and reporting all of your income.
Your records will not be accurate if all your income is not tracked and will make tax time truly painful. Another benefit to tracking non invoiced income is that it may give you a real buzz to see how much your other income is supplementing your overall business, or perhaps, you may decide that the hard graft that goes into raising that bit of extra cash just isn’t worth it.
How does Fiskl help small businesses to keep track of other income?
It’s simple and you don’t need to be an accountant to understand how to record your other income. Fiskl keeps track of all your entries, it’s automated, and goes the extra mile in assigning any fees you’ve incurred to your expenses….. One less thing for you to think about.
- Login into Fiskl.
- From the main menu, tap on the plus button next to “Other income”.
- Select your account type “Income” or “Other income”.
- Choose a category, enter an amount and change currency if required.
- Attach a file from your device/cloud storage.
- Save and the entry is automatically named and saved.
- If your income relates to revenue generating sales (eg sales in retail), choose account type “Income”, create a name for your entry, assign it to a client if required, list included taxes and enter any additional fees (all fees will be added as an expense in your expenses list).
Once saved you’ll be returned to the “Other Income” list where you can create a new entry, edit or duplicate an existing one, search and more.
Nice to know: Your other income is reflected in the home dashboard so you can quickly view the entire picture of your business finances.
Get creative, anything is possible! At Fiskl we admire your entrepreneurship and inventiveness. We’re honoured to help you keep track of all your business finances in the easiest and quickest way.