G
Guest12120
Guest
I’m not a CPA.
I would deduct $2k ad spend but also report a full $3k as an income.
I would deduct $2k ad spend but also report a full $3k as an income.
SPONSORED: GiganticWebsites.com: We Build Sites with THOUSANDS of Unique and Genuinely Useful Articles
30% to 50% Fastlane-exclusive discounts on WordPress-powered websites with everything included: WordPress setup, design, keyword research, article creation and article publishing. Click HERE to claim.Join over 90,000 entrepreneurs who have rejected the paradigm of mediocrity and said "NO!" to underpaid jobs, ascetic frugality, and suffocating savings rituals— learn how to build a Fastlane business that pays both freedom and lifestyle affluence.
Free registration at the forum removes this block.These aren’t hard and fast rules.To add on to what is mentioned above you should have your client pay the $2k in fees directly to the ad platform.
For instance client will setup their own Facebook ads account and add their own credit card for billing then you just manage the account for them and collect $1k a month.
The client should have their own account because they should own all the data and control it all even if they choose to no longer use you.
What's your preference Andy? It seems to be a bit of a touchy topic in some fb ad groups I saw posts regarding recently.
Personally I'm of the opinion the client should pay directly and keep the data etc.
What's your preference Andy? It seems to be a bit of a touchy topic in some fb ad groups I saw posts regarding recently.These aren’t hard and fast rules.
If a business signs up to Booking dot com or the yellow pages and spends money with them then they aren’t paying Google or Facebook direct and they don’t have access never mind ownership of the Google or Facebook accounts.
I’ve some clients who own the Google Ads account, and some who don’t.
Most of my clients pay the ad spend direct to Google, some don’t.
These aren’t hard and fast rules.
If a business signs up to Booking dot com or the yellow pages and spends money with them then they aren’t paying Google or Facebook direct and they don’t have access never mind ownership of the Google or Facebook accounts.
I’ve some clients who own the Google Ads account, and some who don’t.
Most of my clients pay the ad spend direct to Google, some don’t.
If you are doing double entry accounting correctly, you will take in the $3000 as revenue from the client in the form of a sale entry and then will have the cost of ad spend to google as an expense. Your net after expenses will show $1000 for this one transaction.
What are you using for your accounting system. Learning good accounting and using some good software will be a huge asset to you in your life. If you are Mac based I really like Easy Books because there are both Mac and iOS clients, and I find it hugely helpful to have full synced access to my books on every device that I own.
A lot of people like quickbooks, because it dumbs down things a lot. But for what little effort it really is to learn good double accounting, it will serve you well to take what little time it takes to learn it and use it right. Also if you ever want to sell your business, keeping tight and clean books from the start makes all the difference.
I’ve some clients who own the Google Ads account, and some who don’t.
Most of my clients pay the ad spend direct to Google, some don’t.
Join Fastlane Insiders.