Finance Glossary: Accounting Terms You Need to Know as a Content Creator

As a content creator, you wear many hats — videographer, editor, marketer, and even accountant. While it’s tempting to avoid the finance side of things, understanding some key accounting terms can make managing your money much easier. Let’s dive into the accounting terms you need to know as a creator!

1. Income

Income is the money you earn from your creative work. This can include sponsorships, ad revenue, affiliate commissions, merchandise sales, and more. Anytime money lands in your account from your business activities, it’s income. Keep track of all these sources to understand how much you’re truly making.

2. Expenses

Expenses are the costs of running your business. This might include new equipment, software subscriptions, internet bills, or travel expenses for a photoshoot. The golden rule? If it’s necessary for your work, it’s likely an expense—and possibly deductible!

3. Revenue

Think of revenue as your total income before subtracting any expenses. If you’ve made $10,000 from YouTube ads and $5,000 from sponsored posts, your revenue is $15,000. It’s a big-picture number that shows your business’s gross earnings.

4. Profit

Profit is what’s left after you subtract your expenses from your revenue. Let’s say your revenue is $15,000, and your expenses are $6,000. That leaves you with $9,000 in profit. Knowing your profit helps you see how much you’re actually making after covering costs. We’ve got a handy Income and Expenses tracker to help you stay on top of your profit. Download it here.

5. Budget

A budget is your financial game plan. It’s a plan that shows how much money you expect to earn and spend over a specific period. For content creators, this might include allocating funds for new gear, advertising, or hiring an editor. Stick to your budget, and you’ll avoid financial surprises.

6. Invoice

An invoice is a document you send to clients or brands requesting payment for your work. It typically includes details like the service provided, payment amount, due date, and your payment info. Invoicing professionally not only ensures you get paid but also keeps your finances organized. You can create your own invoices using Google Docs, your payment processor, or your accounting software.

7. Receipts

Receipts are proof of purchase for your expenses. Hold onto them! Whether it’s a coffee meeting with a potential client or a new camera, receipts are crucial for claiming deductions at tax time. Digital tools can make storing and organizing these much easier, but it may be worthwhile to keep the printed copies even if you take snapshots or enter them into a spreadsheet or accounting software.

8. Tax Deductions

A tax deduction reduces your taxable income. For example, if you earn $50,000 but claim $10,000 in deductions, you’ll only pay taxes on $40,000. Expenses like home office space, internet, and business travel often qualify, so understanding deductions can save you serious money.

Not sure whether an item is deductible? Use our handy tax deductions cheat sheet to figure it out.

9. Accounts Payable

This term refers to money you owe. Maybe you’ve hired a freelancer to help edit your videos or purchased a service on credit. Accounts payable is the list of these outstanding bills. Keep an eye on this to avoid falling behind on payments.

10. Accounts Receivable

On the flip side, accounts receivable is money others owe you. This might include unpaid invoices from a brand collaboration or a sponsorship deal. Monitoring your accounts receivable ensures you get paid for your hard work.

11. Depreciation

Depreciation is the loss of value over time for big-ticket items like cameras or laptops. For tax purposes, instead of deducting the full cost upfront, you might spread the deduction out over several years. It’s a little technical but can work in your favor, depending on your needs and the type of equipment purchased.

12. Cash Flow

Cash flow is the movement of money in and out of your business. Positive cash flow means you’re earning more than you’re spending — yay! Negative cash flow means the opposite, which might signal it’s time to cut back or find more ways to bring in income.

13. Bookkeeping

Bookkeeping is the process of tracking and recording all your financial transactions. Whether you use a notebook, spreadsheet, or fancy software, good bookkeeping ensures you’re prepared come tax season and gives you peace of mind year-round.

Conclusion

Knowing these basic accounting terms can empower you as a creator. Understanding your finances isn’t just about paying taxes, it’s about taking control of your business and setting yourself up for long-term success.

So grab a notebook or sign up for accounting software, start tracking those receipts, and embrace your inner CFO. Want more help with your business finances? Book a call with us today to see how we can work together to support your content creation business.