Hello, I make money on bandcamp and through direct sales on my website. What is the best way to organize my revenue streams? Should I create these platforms as customers? In my test transactions, I am using the “receipt” function. For received in I am using my bank account, since those funds are deposited into there. For account, I can set up my various sales categories. But for the “Paid by” the categories are customer and supplier. Should I just set up those revenue platforms as customers? Probably an obvious and dumb question, and I realize I can use customer functionality here, but I was wondering if there was a third category I am not seeing? Or a better way to set this up? Thanks!
Since I get lump deposits from these sets I am not sure if I want to create individual customers for each sale or just set this up as a bulk “customer” via Bandcamp, for example.
Your question is too general for this forum. You need to decide with your accountant how your accounts should be organized. Then read the relevant Guides to determine how to implement the plan. Build a test business to experiment with typical transactions. Come back to the forum when you have specific questions.
Fair enough. I guess what I was trying to understand was what the system defines as customer vs supplier. I assume customer is a broad term for any entity in which money is recived (revenue), and supplier is for any entity in which money is given (expense). Every system uses terms somewhat differently, and I was looking for clarity on what Manager intends for these terms. But, if it is too broad I’ll take my questions elsewhere, thanks.
This is more of an accounting question than related to the software. Typically, you should individual parties as customer and revenue type as a accounting head under receipts. This way you will be able to judge how much money is coming from which stream.
That is correct and there is also the Other category. However, this was not your original question. The original question as also in your topic title was:
And that is really up to you and the legal context in which your business operates. As such as recommended by @Tut you should seek advise from an accountant. The tax laws and auditing processes in different countries have different rules and would determine how to record your Income and Expenses and how to setup the Customers (who buy, could as you say be the individuals, each bandcamp stream or just bandcamp aggregate), the Suppliers (who you purchase from) and within Receipts and Payments what could constitute “Other”.
Hi we have a question related to bandcamp as well . Would be interesting to see how you are using manager to account for accrued fees related to your releases.
Not sure if the thinking about this is unnecessarily complicated.
Bandcamp itself has good records and overviews. As you should have a PayPal Business account to manage your Bandcamp funds you should just import the statements to Bank and Cash account in Manager called for example Bandcamp Paypal Account and create the relevant income and expense accounts. You could upload reports from Bandcamp if needed to support the income and expenses.