Login
Password

Forgot your password?

Earning Passive Income and Tracking Earnings

By Edited Jul 29, 2015 2 3

When you are building passive income, you are going to start to see your income come in as a drip and as time goes by it will start to pour in on a consistent basis. This is just part of the course of using this way to make money. Now you might not think about it right away, but you should be tracking earnings from the first penny that comes in through the big bucks.

 

There are many reasons that you should do this. You will be able to track the work that you have put into your passive income opportunity to see what works and what does not work in your business. It is important to track all of your income so that you can file it on your taxes for the year. You will also be able to use the numbers as a way to track how you are doing in regards to your goals.

 

Just like there are many reasons that you should be tracking earnings when it comes to passive income. There are just as many ways to do it. You can choose the method that is going to work best for what you are doing as well as what you can afford. There are free options and paid versions that you can choose from to get started in this journey.

 

Ways of Tracking Earnings

 

Number One

 

You can start out by creating your own spreadsheet to track earnings. This is probably one of the places that many people who are just getting started in the passive income world start out. You can get a form and make it your and the cost is nothing to you other then your time. Using this method does leave you without some of the bells and whistles of other options.

 

Number Two

 

There are people who attempt to track how much money that they make with their business checking account. They use the deposits coming in each month as a way to track how much they have made. This might work if you are only accepting payments through one source, but there is always the chance that you can have deposits from other places. You will also not be able to save your monthly income reports as easily when you choose to use this method.

 

Number Three

 

Quicken is one of the many accounting software packages that people use to track their earnings. Using this or another paid program you can really see how much you are making with passive income. Entering a bit of information from time to time about what you are spending and what money is coming and you can get full reports. It is easy to track just what projects are bringing in the bulk of your income and what ones are just wasting your time.

 

These are just the three basic options that there are for tracking earnings. Investing in building passive income for yourself and investing in your business to be able to track it are two very important things to do. The time and possibly money that you put in now can save you a lot of headaches later on down the road.

 

Advertisement

Comments

Mar 2, 2011 11:20pm
vetochemicals
Tracking earnings is smart and definitely helps know what works, good tips.
Mar 3, 2011 9:22am
BlogMakesMoney
very nice points about Tracking earnings. thumbs up...
Mar 3, 2011 4:03pm
Sookie
Tracking earnings is a great tool when trying experiements. Great article!
Add a new comment - No HTML
You must be logged in and verified to post a comment. Please log in or sign up to comment.

Explore InfoBarrel

Auto Business & Money Entertainment Environment Health History Home & Garden InfoBarrel University Lifestyle Sports Technology Travel & Places
© Copyright 2008 - 2016 by Hinzie Media Inc. Terms of Service Privacy Policy XML Sitemap

Follow IB Business & Money