As an entrepreneur, you know how important it is to keep track of the cash flow in your business. While managing expenses is crucial for maintaining an understanding of the financial health of your business, equally important (and a bit more appealing!) is the income.
But what many just starting out might not be aware of is that income can come from different sources, not only payment for your invoices. Good news, hey? Despite the fact that this type of income cannot be matched to an invoice in your records, it’s still important to keep track of these amounts.
What is ‘other income’?
Income that doesn’t come directly from customers as payment for invoices can come from a variety of different sources, including:
The question is, when you’re using accounting & invoicing software like Debitoor, how do you record payments from different sources that still technically count as income for your business accounts?
Record other income in your invoice software
Because Debitoor is designed to meet the needs of freelancers and small business owners with intuitive functions and features, the ability to add other income is just as simple as the rest of the software.
To register other income in your Debitoor account, follow the steps below:
- Log in to your Debitoor account
- Click on your ‘Invoices’ tab
- At the top you’ll see an option labeled ‘Other Income’, click on it
- To add new income, click the button ‘New Income’
- You can then upload and attach a document and enter details for the income
- Click ‘Save’
The other income that you enter can fall under several different categories, and you can select the best match for each entry. The categories include:
- Other income
- VAT refund
- Cash received
- Interest received
Each time you create a new entry under ‘Other Income’ and save it, it’s automatically applied to your records, meaning that it will be included in your financial reports, if applicable, in order to help you maintain a strong grasp on the financial situation of your business at any given time.