What Are Accounting Reports?

What Are Accounting Reports?

A business uses their accounting records to compile financial reports called Accounting Reports. Reports can be as brief or comprehensive as needed for custom-made reports intended for specific purposes such as profitability of a product line or sales by region. Reporting Accounting Podcast are equivalent financial statements. Financial reports should be comparable to those of other companies, especially ones within the same industry. Reports need to meet certain requirements, so they need to be prepared in accordance with the Generally Accepted Accounting Principles (known as the GAAP) which “encompasses the conventions, rules and procedures, necessary to define accepted accounting practice at a particular time.

Monthly reporting can give you a current view of the financial state of your business. It is important for business owners to analyze their financial data regularly so that they can effectively run their company, make more informed business decisions and enable better operational practices. A balance sheet is a financial statement that outlines a business’ total assets, liabilities and stockholder equity for a specific period. It provides a current view of a business’ financial position, including economic resources the company owns, owes and the sources of financing for those resources.

As podcasts continue to increase in popularity, many are looking to join the growing field with hopes of monetizing their knowledge or passion. From hobbyists wanting to share an interest and supplement their income, to business owners looking to grow a customer base and assert their expertise, podcasting offers broad appeal.  The audience for podcasting has grown significantly over the past year, according to The Podcast Consumer 2019, a report by Edison Research and Triton Digital. Fifty-one percent of Americans ages 12 and up said they had listened to a podcast before. Thirty-two percent reported having listened to one in the past month, and 22% had heard one in the past week. While all key demographics grew, many of the increases were seen in listeners ages 12 through 24.1

Even small podcasts can make money through a variety of different income streams—popular methods include advertisements, affiliate marketing, crowdfunding, selling merchandise, and hosting live events. Big platforms like Spotify and Apple Podcasts allow users to upload their shows, which can help build an audience and attract more advertisers—a key source of revenue.

How Do Podcasts Make Money?

Advertisements are one of the most effective ways that podcasts can produce an income, although it may take time to build an audience that attracts the attention of potential advertisers. Advertisement sales usually happen either directly between the brand and podcast, or by using an agency as a broker or marketplace.

Commission from affiliated products or programs is another common income stream for podcasters. Hosts can mention products on their show and give listeners a specific discount link. The podcast then receives a percentage of each sale made with its unique URL.

Rather than including advertisements, some podcasts prefer to sell subscriptions to their show by keeping some or all of the content behind a paywall. Crowdfunding platforms like Patron let subscribers pick a donation tier for different benefits, such as exclusive content or early access to episodes.  Most of the aforementioned methods are more financially beneficial with a larger audience. While certainly helpful, a big following is not necessary in order to make an income through podcasting. Later, we will discuss opportunities to monetize a podcast that are not directly tied to audience size.

Expand Your Audience to Attract Advertisers

Podcasts are becoming an increasingly sought-after advertising medium for brands. Podcast advertising revenue in the U.S. is expected to increase by 14.7% in 2020 despite the pandemic, according to IAB’s U.S. Podcast Advertising Revenue Study, prepared by PwC. The study reported $708.1 million in podcast ad revenue in 2019, a 48% increase from 2018

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