Bookkeeping for Content Creators: What It Is and How to Get Started
You may have started your content creation business as a hobby or a side hustle (and, hey, that might still be where you are). But if you are earning any money from your content — whether it’s on YouTube, OnlyFans, Instagram, or somewhere else — you need to keep track of your books.
Bookkeeping for content creators is essential because you’ll need to report that income to the IRS and possibly pay taxes. Additionally, you may be able to lower your taxes with qualified business expenses.
Bookkeeping may sound time-consuming, boring, or challenging, but it is simply the act of keeping track of your financial transactions.
Simple Steps to Bookkeeping for Content Creators
No matter how much business sense you have, bookkeeping for content creators doesn’t have to be hard. Here’s a step-by-step guide to bookkeeping.
Separate your business and personal expenses.
Separate bank accounts can be one of the best things you can do to streamline your bookkeeping. Mixing personal and business expenses makes it hard to track what is really related to your business.
If your tech is for both personal use and content creation, you may want to track how much time you use it for each purpose. (Your accountant can help you decide whether this level of tracking is necessary.)
Organize your records.
When you receive income statements or receipts for purchases related to your content creation business, keep them in a secure area. That could be a folder on your hard drive, hard copies printed and stored in a safe spot, or a secure online folder. If you use accounting software, enter them on a timely basis — that will stop the tax time scramble of hours spent gathering receipts and adding things up.
We’ve even created an Income and Expense Tracker to help make it easier for you to manage your finances. Click here to download it now!
Know your numbers.
Track your income and your business expenses on a periodic basis. You might do it at the end of each week, month, or quarter, depending on what makes sense for you.
Make sure you’re tracking all income sources — ad revenue, brand sponsorships and collaborations, subscriptions, tips, and every other way you get paid.
If you’re not sure a business expense is deductible on your taxes, get specific advice from an accountant who understands your situation and online business.
Plan before you spend.
You probably get constant emails with discounts on new and exciting tools you need to make your online business easier — new microphones, camera and lighting setups, backup systems, business coaching, and other things you can’t miss out on. But you need to make sure your income justifies the cost.
A solid bookkeeping practice will help you make quick decisions on business spending without regrets.
Set aside money for taxes.
An accountant can help you estimate how much of your income to set aside whenever you get paid so you can make accurate estimated quarterly tax payments. Staying up to date on your quarterlies will make sure you aren’t surprised by big tax bills and penalties when it’s time to file.
Conclusion
When you’re a content creator, your priority is creating and promoting content on your chosen platform—not sorting through receipts and organizing financial documents. That’s why bookkeeping for content creators is so important. And that’s where we come in. Book a call today to discuss how we can support your bookkeeping needs, allowing you to focus on what you do best.
