Five Steps to Take When Your Podcast Begins to Make Money
If you are reading this, you may have already started to make money on your podcast. If so, congratulations! If not, here are a few ways in which you can begin to make money on your podcast. When your podcasts begin to make money, there are certain steps you should take to ensure that you keep track of expenses and stay within any tax laws that may be applicable to your state. Here are five steps you should take when your podcasts begin to earn you cash.
When you begin to receive money, you need to begin tracking where this money is from and how much. This will aid in filing taxes, budgeting and tracking where the most income is coming from. When you begin this documentation, you should cover important factors such as who the money is from, what podcast the income is from, when it was received, where it went into (bank, PayPal, etc.) how much and why it was received (e.g. sponsorship, donation etc.)
You should ask a professional accountant whether this money needs to be included in your taxes. This will entirely depend on how much you are earning and whether this podcast is part of your business or is your business. This is why recording everything is so important. If you run your podcast as an S Corporation business, you will be required to pay taxes, and this is where a business tax calculator will come in so handy. This crucial device will help you calculate the tax you need to pay for your podcast business, and ensure you are meeting the legal tax requirements.
Using the Profit for Expenses
Any profit should firstly be used for expenses that come from your podcasts. This is the best way to use this money until you begin to earn more than your expenses cost. Regular expenses are usually things such as domains, licenses, media hosting and web hosting.
Sharing Money with Guests and Cohosts
If your podcast makes money, it is only right that any guests or cohosts receive money fairly or you may encounter some problems. You may decide this in several ways, whether you all take a percentage after expenses, take a specific amount, or hosts and guests earn per podcast they feature in. You must ensure any guests and cohosts also add their earnings to their taxes too when they earn over a certain amount each year.
Upgrading Your Podcast
Once you begin earning a good amount (meaning you have spare cash after paying employees and expenses), you can begin to look at putting that money to good use by upgrading your podcast. This is one way to increase viewer rating and introduce more people to your show. Purchases should either be used to increase the quality of your podcast, improve the abilities, or make the workflow of your team easier. If you don’t yet have enough profits here is how you can improve your podcast to make it better for your listeners.
Making money from your podcast is a great feeling, and there are always ways to improve. Understanding how to make money as well as what to do with it ensures you put it to good use and also follow any tax regulations.