Yes…I’ve put off filing my taxes. Not that I’m going to owe money, it’s just that I hate doing them.
I’ve run into a snag…
In trying to assess what my income was from 2015, I only find ‘Funds Cleared’ and ‘Order Revenue’ available to compile.
In the US, for accounting purposes, Income is only ‘earned’ when services are completed. ‘Order Revenue’ is actually a misnomer, because that is when the order is initiated and prepaid, but not yet earned by the seller in the true sense of the term. Revenue is only real when a contract is completed. Yes, Fiverr still has control of the funds to assure its own security before clearing, but effectively business is only finished when the buyer clicks ‘completed’. At that point, the seller has an account receivable, an asset, due from Fiverr for the amount of the revenue. Once the ‘funds clear’, Fiverr has paid the account receivable asset for asset; again not revenue. The dates of each transaction are important for reporting purposes: Order Completed for accrual accounting, and Funds Cleared for cash accounting. So…
I propose a change in revenue reporting from Fiverr for its sellers as such:
Replace ‘Order Revenue’ with ‘Order Initiated’ and
Add a dropdown option ‘Order Completed’ or possibly eliminate 'Funds Clearing’
while keeping ‘Funds Cleared’
I hope you’ll agree that this format of revenue reporting would be of benefit to all of Fiverr’s sellers in accurately assessing our revenues month to month, and on an annual basis.
Thanks for your time. I’d look forward to continued discussion on the matter.