One thing, which always comes with earnings if of course paying taxes. And web earnings do not make a difference. However there are some special features with web earnings.
I’ve established a small business enterprise for my web earnings. With my company, I also do some corporate security planning. I report my web earnings as my company’s earnings. Last December, I made an accounting application with OpenOffice, so now I’m aware all the time, how my business is doing.
Web earnings special features
Local
Web 2.0 industry is quite new, and local bank and tax authorities may not have an experience, how to deal with them. Officers may not have heard about PayPal and are not familiar with different transactions costs, payment buffers and cashing out methods.
Global
I’m living in Euro area, but I do my business in dollars. At the moment dollar is falling and my earnings are slowly disappearing. Following and counting currency changes take some time and rates are changing daily. When your transaction sums are small and you’ll have to do quite much paper work for every payment, you’ll loose interest in small revenue. There is no point doing 20 minutes work for $5, if you’ll have to do 5 minutes accounting work and dollar falling takes 15% out of it.
Reporting earnings
However, I managed to fill my tax form few days ago. There were some challenges, and I’m going to improve my accounting this year. I’ll get the decision at May, so we’ll see how did I do.
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