How to Keep Track of Multiple Sources of Income

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Passive incomes from multiple streams are a great way to boost your income. Very often, you may find them coming in from so many areas at such different times that it becomes hard to keep track of.

With just a little organization, it can be easy to handle these incomes. Below, we give you some handy hints on managing multiple sources of income.

Keep It Separate

If you have a main job or source of income, keep this separate from your residual income streams. It is likely that HR from your main income will organize your tax and health insurance payments.

Mixing all incomes together may confuse the situation and result in you paying more tax than your need.

Keep Records and Books

A spreadsheet is a great tool to help you keep track of any money going in and out of your side businesses. At the minimum, they must include the amount earned and any outgoings. Keep proof in the form of sales receipts and bank account statements in a physical or digital folder.

If using a homemade spreadsheet, you can organize the tabs into days or weeks. Add in columns for the amount gained, the category it is in (a particular area of sales, product), the account number, and any other notes. This makes it easier to scan back and look through if you are double checking later.

If you are hiring staff, you may need extra help to manage their taxes. Specialist software, also known as paystub software, may be able to help with this.

Pay Yourself

There are two ways to approach this.

The first is to pay yourself a monthly salary from your multiple streams of income. Organize a transfer so the money is deposited into your personal account at the end of each month. Always make sure that your business has enough money to pay salaries for yourself and any staff you may hire.

The second way is to take the profit from anything you have left after business costs. Be aware that you will also likely be paying tax, so set aside a cut of this until the end of the financial year to pay this.

Multiple Sources of Income Tax

For the purposes of working out personal and business income, it will help to separate your bank accounts. Make sure you have a dedicated business account.

Tax laws will change and vary depending on the state that you are in. It will be likely that you have to pay extra taxes quarterly, so make sure you set this aside from any profits of wages. Remember to keep receipts for any outgoings and expenditure, as you could claim this back on expenses.

Operate It as a Business

Although this may not be your main source of income, it is important to treat it like any other business. This may mean that you have to do some analysis of sales and tracking.

Check the performance of your products on a regular basis. Note down their performance over time just as you have been doing with profit. This will help you make adjustments should you wish to upscale later.


Once you are tracking the income, paying taxes, and analyzing sales from multiple sources of income, you can begin to upscale. You have also put the security in place so that if your main income ever stops, you will be ready to make a full-time business from side incomes or sell the business for profit.

If you are looking for help in increasing profit, our website can assist. We have daily news and articles about getting the best from your business. Join us today for some helpful advice on how to maximize your profits!

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