After a lower month of income last month, it’s great to see that August was my highest earning month ever!
My hard work in July finally paid off in August’s income.
If that sounds confusing to you, the reason why is because I’m basically paid in arrears for much of my work. I do get some pre-payment for services, but many of them are paid at the end of each month after work has been performed.
This means that if the income was received after July 31, even though it was for July work, the income was counted in August.
The reason I do my accounting this way is because you never know what can happen. A client may pay you very late or not at all, and you don’t want to have already accounted for that income if you don’t end up receiving it.
This is just another reason why solopreneurs have to hustle and why an emergency fund or buffer of some sort is 100% necessary when you run your own business.
Here’s a deeper look into how I made money, and spent money, with my business last month.
VA/Blog Management Services – $5,665.66
Writing – $1,945.00
Advertising on both my sites – $630.00
Bonuses, Tips, etc.– $0.00
A few months ago, I started sharing my expenses with you. I think sharing the cost of running my online business each month help provide a more realistic picture.
The expenses listed below are only what I pay out of my business account this month.
You won’t see a line for internet in the expenses below because that is something I would pay for even if I didn’t have an online business. (But yes, I do get to deduct most of it now that I have an online business.) So keep that in mind. ?
VAs and Tech Services – $2,194.10
PayPal and Other Fees – $49.30
Business Tools – $109.88
Advertising – $10.00
Podcast Hosting and Domain – $30.17
Office Equipment and Supplies – $44.60
New Computer – $100.00
Total Expenses: $2,528.05
Income less Expenses: $5,712.61
Expenses are slightly up from last month, but I’m still pleased with the overall progress I made month-over-month. My PayPal fees would be significantly higher if I didn’t use FreshBooks for invoicing my clients. I can’t recommend FreshBooks enough if you are a freelancer who is primarily paid by PayPal. It saves me a lot of money on invoicing fees.
I started a new Pinterest strategy in August. The business tools I paid for above are for a yearly subscription to Tailwind and my first month of Board Booster. Yes, I decided to use both of these tools because I believe they serve different purposes. I use Tailwind to pin the content of the bloggers I follow and I use Board Booster to automate pinning of my own content. I’ve seen pretty significant results already as Pinterest is now my #1 source of referral traffic. I’ll likely do a more in-depth post on this strategy soon.
It’s also important to remember that my online income has not yet been taxed. This means that about 30% of what I make is going to be taken by Uncle Sam. That “expense” is not included in the net figure listed above.
If income reports get you jazzed, you can see all of my online income reports on this page!
Just to see how far I’ve come, I averaged my monthly online income for the 26 months I’ve been freelancing. Even with the smaller months at the beginning, my average monthly online income (gross) is $3,461.80. My 12 month (gross) average is $5,892.38.
Did you make any online income in August? Is there anything else you’d like to know about how I run my business or make income online? Let me know, I’d love to help you out!