How to declare income when most/all your income comes from Paypal?
How do I declare my income if all of it comes from paypal ? Most accountants in Portugal (where I live and where this company will be based) don't know how it works... Do I declare it only when I transfer the money to the company's bank account ?
2 Answers
If your accountants don't understand when to declare income, then you have the wrong accountants. I've never met an accountant worth anything that cannot tell you exactly when income must be declared. Try to get a referral to a decent accountant from another businessman there.
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I think they're not used to "those fancy intangible internet things"... – João Pinto Jerónimo 13 years ago
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it seems to me income is income. When does Portugal recognize it as income? Doesn't seem to be an internet thingy... but I guess it could be seen that way by some. – John 13 years ago
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Nothing intangible internet thingy here. This is like a credit card. if they can not understand that, report them to their authorities for incompetence and get other ones - FAST. Paypal is like any other merchang for clearing payments and very similar to a bank account in bookkeeping. – Net Tecture 13 years ago
Income is income. The source of the income is a minor note in your accounting if you want to keep track of it.
In other words, the source of the money makes no difference. If someone buys your product and sends you $100 from Paypal, or $100 from a credit card, or $100 from a wire transfer, or $100 cash, or $100 from a check- the accounting is the same.
