Bookkeeping for online subscription income

[Ladybird4]

My boyfriend is starting an online business wherby users pay a fee to become a member.

This payment will be made online via credit card or paypal and the fee can be paid monthly or one annual payment.

Income will also come in the form of commission.

I have some basic accounts experience in the traditional sense. ie sell goods, raise invoice and receive payment 30 days later but I am a little unsure as to how I should go about accounting for these online payments.

Do I need sales ledgers for all of the customer as there could potentially be thousands?

For the annual fee, should I account for this on an accruals basis?

Also, does anyone know of any accounting software that would be suitable for this kind of business?

I just don't know how to keep track of these payments?

Thanks in advance

: )

[Jenny100]

To keep track of the payments streamline should send a statement of receipts made.

As for keeping track of them, it is dependant on wether the membership is just a rolling membership or are they tied into a contract for so long, if they are tied in then you will need to keep track of them so as if they have not paid membership you can chase them up as they would be in breach of the contract, if it is not tied in then this will just be classed as revenue and you will to need the details, also there could be potentially be an issue with the Data Protection Act.

If an annual membership has been paid then you will need to account for it on a prepayment basis as some of the money you receive will not be related to the current tax year, so you will not need to be taxed on it until the following year.

[savitha]

You can go for any online accounting and bookkeeping software. Even free online accounting software provide good services. By using these online software, you can access the account anywhere, anytime.
http://numia.biz/ Media URL: http://numia.biz/
Description: Free online Accounting and Bookkeeping software