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Affiliate Marketing and Tax

by CharlesL
7 replies
For those of you who are using the accrual method of accounting, how do you record affiliate commissions? Do you record them at all?

Because I'm thinking it would be a hell of a lot easier to just record the money as it comes in, rather than every time you make a commission. But then I'm not sure this would count as using the accrual method rather than cash basis...

Are there any accountants here or just affiliate marketers who know a thing or two about tax from personal experience?
#affiliate #marketing #tax
  • Profile picture of the author dbong
    If you record transactions as money comes in, this wouldn't qualify as accrual accounting. Accrual accounting records every transaction as it occurs (matching revenues and expenses with each transaction), regardless of cash flows.

    You could just use cash accounting as your method. It's more common and easier in my opinion and as you are experiencing.
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  • Profile picture of the author stevenjacobs
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    i personal think cash accounting is easyer , and is more realistic for affiilate marketing
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  • Profile picture of the author vishwa
    I am never so much bother about Taxes
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    • Profile picture of the author salegurus
      Originally Posted by vishwa View Post

      I am never so much bother about Taxes
      Not very clever, i'm sure even India has some semblance of a Gov Tax collection agency. Might come back to bite you in the rear...
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      • Profile picture of the author vishwa
        Originally Posted by salegurus View Post

        Not very clever, i'm sure even India has some semblance of a Gov Tax collection agency. Might come back to bite you in the rear...
        I know that. The taxable income from online in India is above Rs 5,00,000. So, They will not bite my rear until I cross that limit.
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  • Profile picture of the author jamiedavis
    Well, a new report from the nonpartisan Tax Policy Center found that long-standing tax breaks are set to end at the conclusion of the year, developing the proverbial "fiscal ledge." If legislators do not address the problem soon, most Americans will be paying a lot more in taxes next year. That involves the typical American household. Some might need instant cash to pay for taxes this year. Be able to pay taxes beforehand to avoid penalty.
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  • Profile picture of the author shaibal4g
    Officially, an affiliate marketer is a contractor. You are responsible for paying taxes for the income you make from affiliate marketing online. That means you would have to file tax papers besides your regular income being a self employed man or woman and pay income tax.
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