Ask yourself this simple question: How do you make money?

You may be surprised at the answer. Many entrepreneurs provide more than one kind of service. Therefore a income account should be created for each stream of income.

An income stream is defined as a regular and continuing flow of money generated by a business.  For example, you primarily provide web design services, but you may also get commission from hosting sites. Then you need to add a “commission income” to track all commissions received.

Also if you ever called upon to do consulting on a project or business and you are paid for it, then you would want to classify that income and consulting income.

As you generate income in different areas, you can see where are your money makers and then you want to re-focus your energies to where the money is or isn’t.