You can do it either way if you are reporting it as business income, but you have to do it the same way for every shop and for every year. When you fill out your first Schedule C for business income, there will be a line asking if you are using the cash method or the accrual method. If you want to report income based on the date you get paid, use the cash method. If you want report the income based on when you earn it, use the accrual method. Once you choose a method, you have to use the same method every year, unless you go through a complicated process to switch over. I prefer the accrual method personally. What I make is what I make. If for any reason I end up not getting paid for a shop that I reported as income, I subtract it from my income the next year.