Cash vs. Accrual Accounting for Affiliate Marketing & SEO

Cash Builder

BuSo Pro
Joined
Jan 14, 2017
Messages
454
Likes
607
Degree
2
What is the correct way to track earnings for affiliate sites? Is there a correct way, or is it just preference? A lot of affiliate networks, including Amazon, pay out the earnings after 2 months. Do you add revenue to your profit/loss statement when you earn it, or when it comes into your bank account?

Here is my current setup:

I have a P/L sheet for all individual sites. I put the revenue that I actually earned that month into it, the earnings that I can pull from the affiliate network reports for that month.

I also have a P/L sheet for my business as a whole. In this, I put the earnings as money that came into my bank account that month. This could be Amazon earnings from 2 months ago, and Ezoic earnings from 1 month ago.

I don't really see any other way I can track this. The first way allows me to calculate my KPIs for the month, while the second way allows me to see what cashflow I have for the month. Is there a better way to do this? It's confusing the hell out of me each month as the numbers obviously don't add up between the statements.
 
What is the correct way to track earnings for affiliate sites? Is there a correct way, or is it just preference? A lot of affiliate networks, including Amazon, pay out the earnings after 2 months. Do you add revenue to your profit/loss statement when you earn it, or when it comes into your bank account?

I’m not an accountant, but I believe it is a preference. Although, you cannot switch back and forth whenever you want.

Check this out:
https://quickbooks.intuit.com/r/bookkeeping/cash-vs-accrual-accounting-whats-best-small-business/

You can also do a google search for “Cash vs Accrual Accounting” to get 1000 other opinions.
 
I’m not an accountant, but I believe it is a preference. Although, you cannot switch back and forth whenever you want.

Check this out:
https://quickbooks.intuit.com/r/bookkeeping/cash-vs-accrual-accounting-whats-best-small-business/

You can also do a google search for “Cash vs Accrual Accounting” to get 1000 other opinions.

Thanks, that’s what I was looking for. Think I’ll just keep doing what I’m doing for now, I use the cash flow system for my main business accounts. Don’t think I’ll be making $25 million for a while, unless I have a really good Black Friday.
 
I do cash basis in my overall business and life. Money gets noted when it comes in or leaves. This is so I have 100% accurate numbers down to the penny about my net worth and cash on hand, etc.

But on each individual project I do accrual accounting. I want to be able to compare revenue and expenses month to month in numbers and charts.

And I definitely don't want to have to reconcile my accounts receivables versus my accrual numbers on every little project, which is why I run the overall finances on a cash basis.
 
Back