Record income at the source
Keep a record of sales, royalties, client payments and other music-related income with dates and supporting documentation.
Save platform statements and invoices with a note explaining which project or activity generated each payment.
Separate gross and net amounts
Platform fees, refunds, currency conversion and payment charges can make the amount received differ from the reported sale.
Record the gross amount, fees, refunds and net receipt separately when the available statement provides those details.
Reconcile payments regularly
Comparing records with bank or payment statements helps identify missing transfers and duplicate entries.
Set a monthly reminder to match each recorded payment with the corresponding statement or receipt.
Check local obligations
Tax and accounting requirements depend on your jurisdiction and circumstances. Do not rely on a generic article for personal tax advice.
Keep records organised and consult the relevant tax authority or a qualified accountant if you are unsure how to report income.