For creators and authors
Creators, authors and musicians
Brand deals, platform payouts, affiliate earnings, book royalties and music royalties: where each goes, gross and fees, and each platform's 1099.
Open in EscBooksGross, fees and what was deposited
A payout has three figures, and each goes somewhere different:
- Gross earned: what the platform paid you before its fees. It's your income: gross receipts, with what clients paid you, on Schedule C line 1 or line 1a of Form 1120, 1120-S or 1065. It's also what a platform's 1099 reports.
- Platform fees: what the platform kept. It's a cost of the business, recorded as an expense in the Fees category: Schedule C line 10, Commissions and fees, or among Other deductions on the corporate and partnership returns.
- Deposited: what reached your account, the gross less the fees. It's what your bank statement shows.
Many platforms take their share before they show your earnings, so nothing comes off the payout and the gross is what was deposited. YouTube is one, and book royalties come this way too. Patreon and Substack list their fees with each payout. Try a few:
A payout from
Gross earned
$629.00
Deposited
$566.10
Patreon lists its platform fee and payment processing on each payout. They come off before it pays you.
- IncomeSchedule C line 1: Gross receipts or sales$629.00
- Fees, an expenseSchedule C line 10: Commissions and fees$62.90
General ledger · one entry
The account moves by what was deposited, so it matches the statement line. At year end, Patreon's payouts add up by platform on Reports → Taxes: compare with the 1099-K it sends you, if it sends one.
In the general ledger a payout is one entry: the account it went into is debited what was deposited, Fees is debited the fees, and Income is credited the gross. See Reports and taxes.
Recording a payout
- On Income, click Other Income (or Record in the Other Income card).
- Pick Platform payout as the Type, then the platform. Yours has the ones you've been paid by before and the ones you added. For any other, type its name in Search platforms, or open All platforms for the whole list. What it needs saying shows under it.
- Type what was Deposited, and the Platform fees if the platform shows any. Gross earned fills in as the two together. Or type the Gross earned from the platform's statement, and the fees fill in as the difference.
- Pick the Date received and the account it was Deposited to, add a Note if you like (like the month it's for), and click Record.
- It counts the day it came in, like a client's payment: in Received and the chart on Income, on the dashboard, and in every report. Its fees are an expense on the same day, from the same account.
- The fees are listed on Expenses, named for the platform, as Platform fees on a payout. They follow the payout: opening them says so, with Open the payout, and only a receipt can be added there. Change the payout's fees and the expense changes; set them to nothing and it goes.
- The pencil corrects a payout and the bin removes it, with its fees. One recorded from a bank statement shows From a statement: its amounts, date and account follow the line, and only its note changes on Income.
- Amazon KDP pays each marketplace (Amazon.com, Amazon.co.uk, Amazon.de and the rest) as its own deposit. Record each one: they add up by platform.
- Some platforms pay into PayPal, Stripe or X Money first. The payout is income once, however it reaches your bank: record it once, and moving it on to your bank later isn't more income.
Don't see your platform? Add it
Any platform, affiliate program or store that pays you can be added once and picked from then on. Under Yours, click Add a platform…, or search for its name and click Add “…” as a platform…:
- Platform name: what you call it. Its payouts are listed and added up under this name, on Income and on Reports → Taxes.
- Statement words (optional): the words on its deposits on your bank statement, like KOFI PAYOUT. A deposit with those words is offered as its payout when you review a statement, as the built-in platforms are. Whole words count, and numbers are ignored, as an import rule's words are.
Click Add Platform, and it's picked for this payout. Edit yours renames one, changes its words, or removes it. Renamed, the payouts recorded under it follow; removed, they keep its name.
Payouts on a bank statement
When you review a bank statement, a deposit is set aside as Deposit until you say what it was. Under What is this?, pick Platform payout… (under Income with no invoice), then the platform, and click Mark as Payout. A platform that lists its fees on each payout (Patreon, Substack, Bandcamp, Airbnb) asks for them: the gross is the deposit and the fees together. One that pays net (YouTube, Amazon KDP) asks for nothing more: the deposit is the gross. Add fees is there for the odd one.
- Some deposits are worded so EscBooks knows where they're from, and offer it under What is this?: Payout from YouTube? for a Google deposit that names YouTube, Payout from Patreon?, Payout from Twitch?, Payout from Audible?, Payout from Kobo?, Payout from Apple Books? and the audiobook distributors. Click it to open the payout with that platform named. If the wording misled and it's another platform's, Not YouTube? opens the full choice.
- Google and Amazon word their deposits alike for different programs, so those are offered as Payout from Google? (YouTube or Google Play Books) and Payout from Amazon? (Amazon KDP or Amazon Associates): pick the one it is. If you've only been paid by one of the two before, it's picked for you. KDP pays each Amazon marketplace on its own, under names like Amazon Media EU or Amazon Australia, so a month can bring several small Amazon deposits.
- A platform you added is offered the same way when its Statement words are on the deposit.
- Other deposits aren't recognized, often because they name PayPal or Stripe instead: pick Platform payout… yourself.
- Already recorded the payout, by hand or by approving your assistant's request? The deposit offers Already recorded: with that payout, when it's for the same amount deposited, within a week, into this account or none yet, and isn't tied to another line. Click it to match the deposit to it, rather than record it twice. Approving the statement puts a payout that had no account into this one.
- On a statement waiting for review, the payout is recorded when you approve it (Undo clears it before then). On an approved statement it's recorded at once, and Undo takes it back out; a matched payout stays recorded, just no longer matched.
A payout recorded with no account waits on Month-End among the money received and not deposited, at the amount deposited. More in Reviewing statements.
Who paid you, and each platform's 1099
- On Income, each platform that paid you is listed beside your clients, under Paid by, with its gross, its number of payouts and its fees.
- On Reports → Taxes, the Platform Payouts card lists each platform's gross for the year, all its payouts added up, with the 1099 to set it beside: a 1099-MISC from YouTube (Google) and Amazon KDP, a 1099-NEC from Amazon Associates, X, Spotify for Creators and Kick, often both from Twitch, and a 1099-K from Patreon (or from Stripe, for Substack) only above the IRS's threshold. The Patreon 1099-K shows the gross, before its fees, as EscBooks does.
- A corporation, an LLC taxed as one among them, usually isn't sent a 1099-NEC or 1099-MISC: for one, the card says each platform's total is your record.
- A 1099 counts what the platform paid in the calendar year, as EscBooks does, by the day each payout came in. December's earnings paid in January are on next year's.
- The Accountant Packet lists each platform's payouts with its income, and the gross is on the form's gross receipts line.
What you can deduct
A cost of making your work is a business expense: record it on Expenses and it lowers your profit. For creators and authors that's often:
- Platform fees: recorded with each payout, as above.
- Equipment you buy, like a camera, microphone, lights or a computer: record it on Equipment, where it's written off in full or over its useful life. See Equipment.
- Software and subscriptions: editing and design software, music and stock licenses, your newsletter or website tools.
- Contract labor: an editor, a thumbnail or cover designer, a narrator paid a fee. See Subcontractors.
- Advertising: promoting a video, a book or a newsletter, Amazon Ads among them.
- Supplies, Travel to a shoot or an event, and Legal & professional fees, like an accountant.
Money you take out for yourself isn't an expense: see Owner money.
Your assistant
A connected assistant can ask to record a payout: the platform, what was deposited, and the fees or the gross. It waits for you under Requests, showing the gross, fees and amount deposited, and Record Income records it as if you'd entered it on Income. See Connected assistants.
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