With good bookkeeping, then you can get into the world of accounting. All-in-one tax, bookkeeping, and tax service with simple monthly pricing. Learn how to build, read, and use financial statements for your business so you can make more informed decisions. Get free guides, articles, tools and calculators to help you navigate the financial side of your business with ease.

• Knowing what you can deduct and how to prepare for tax season can save you money and headaches.
• An LLC provides that protection while a sole proprietorship does not.
• If you make more than $400 per year after operating expenses, you’re expected to make payments on your self-employment taxes every quarter.
• This prepares you for tax time and helps you defend your deductions if the IRS audits you.
• Generally my mindset when it comes to my influencer business is that if I have to spend money on something necessary to the growth of my business, I will just make more money.
• It’s important to include all sources of income, even including products that are received in lieu of payment.

Understand your taxes

At face value, the answer may seem pretty simple, but it could also get very complex. Without any additional context, one way to structure your business would be based on the different revenue streams and what they are doing. Even though the company was halfway retained earnings through the year, that gave sufficient time to adjust and make sure the business is well set up for tax season. The most important thing here is to start things off right from the beginning, while you’re small and while you’re capable of tracking these things. That way, you can set up a foundation for success before you get to a point where it’s too hard to manage all of these items. A study from the IRS found that small business owners who fail to take advantage of tax deductions lose an average of 15% in potential savings.

• Finding an accountant that is actively helping you grow your business can be more difficult than you think.
• We aim to support the widest array of browsers and assistive technologies as possible, so our users can choose the best fitting tools for them, with as few limitations as possible.
• This becomes crucial as you juggle multiple brand deals and content deadlines.
• I eventually moved to a bookkeeping program that comes with my own dedicated bookkeeper but before then, here’s how I kept track of expenses, which you can follow.
• If you have few expenses and your income is spaced, you can get away with bookkeeping bi-weekly.
• Whether you’re a blogger, YouTuber, or influencer, understanding accounting for content creators can help streamline your financial process and optimize tax deductions.

Accessibility

Mixing personal and business expenses is one of the most common mistakes content creators make. Set up a separate business bank account to ensure that your expenses are clearly divided. This will make tax filing easier and ensure that you don’t overlook business deductions. Content creators often have multiple income streams—sponsorships, affiliate marketing, ad revenue, merchandise sales, and more. Tracking income from various sources is essential to ensure that nothing slips through the cracks. Regularly review and categorize your expenses to maximize deductions.

Hire an accountant: Work with Golding Accountancy

Every successful creator needs the right financial tools in their arsenal. Smart creators never rely on a single platform or revenue source, such as making money from a podcast on only one platform. Build your presence across multiple channels to protect against algorithm changes or platform shifts. Brand deals can become your biggest revenue source once you’ve built a dedicated audience. You’ll earn by creating content that naturally Law Firm Accounts Receivable Management showcases products your followers already want. YouTube creators earn through pre-roll, mid-roll, and end-screen ads.

Without financial records, you have no way to prove what you spent, what you earned, who you paid, etc. Keeping a detailed financial record will ensure you are getting every deduction possible. All of these platforms offer the chance to automate your accounting processes. You get back all the time you previously spent manually tracking income and expenses while streamlining your processes and improving your accuracy.

• Keep detailed records and receipts for all business expenses, as you may need proof of business-related purchases.
• By understanding which platforms and strategies generate the most income, you can optimize your efforts, tailor content to your audience, and negotiate better deals with brands.
• Remember that taxes can take a significant bite out of your income.
• They receive money pretty instantly, and then they also pay their bills pretty instantly.
• Some brands offer flat rates per post, while others might pay based on performance metrics.

If you create content in multiple countries, research international tax laws that may affect you. Most content creators start as unincorporated sole proprietors, which means you and your business are considered the same entity for tax purposes. As you grow, you might consider other structures like a single-member LLC or an S-Corporation—keeping in mind that each has its own tax implications and benefits. You may choose to skip the LLC, but you should still opt for accounting for content creators an EIN and open a business bank account.