Where Money Goes… A Look at Expenses
I have shared before my income breakdown and where my income comes from… but I don’t think I have ever shared where my business income goes…. So here’s a peek at behind the curtain again at what went on for me in 2016.
While I think that this is mostly self explanatory, one of the biggest categories on here is advertising. I take out FB ads and other promotions for my products as well as do physical mailings for guilds to book me.
Every year I look at the transactions in my Wave program (what I use for my accounting) for each category and see how I can reduce my expenses so I hang on to more income. That may mean changing vendors for a better price on office supplies, or switching banks to lower fees.
Since I have previously shared where the revenue streams were from, this graph shows you how the year stacked up. My expenses were half of what my revenue was, meaning it takes half of my revenue to run the business.
I hope this has been helpful to you to see how this works. The numbers for 2017 will be much different, and I hope to spell that out next year!