Accounting
This Blog Post was originally published on the platform "writelier" (formerly "co-writers" and "200wordsaday"). Sadly the blogging platform was discontinued. I downloaded all my blog posts and prepared them to be republish them here.
I just finished some accounting work that has been piling up since January. I should really do this every month and not stockpile it.
Last year the ministry of finance contacted me and asked if I didn't want to stop my freelance business. They asked because I was making a negative revenue since the first year I've had it (2014).
I took a look at my turnover. Although I have a yearly turnover of about three to four thousand euros a year, I have a loss between 50 and 350 euros per year. No wonder they contacted me.
Because of the negative revenue, I am shrinking my yearly income which means less tax. Normally this would be great, but because it is a freelance business they are questioning my intentions. The negative income could be seen as tax fraud.
My tax consultant told me that I should at least break or make a small amount of positive revenue. Even a few euros would counter the tax fraud statement. The consultant also said it was just a warning, but I need to get a little bit of money in.
The thing is, I'm not working full time as a freelancer and see it more as an opportunity to pay my server and domain bills. If I didn't have the business my loss would be even greater and I couldn't send out any bills.
I'm already in contact with another customer, but their yearly bill will only pay half a month of the server costs. Still, it is more than nothing.
I would just need a small separate income stream to break even. Maybe a small app or something I could sell? I don't know.