Finding the Right Accountant for Influencers: Tips and Considerations

All business owners must track expenses and file taxes. However, each industry has unique requirements. That’s particularly true when it comes to the world of influencers. 

Influencer finances are particularly complicated. It’s essential to choose an accountant who understands the industry and your needs. 

The Unique Financial Landscape of Influencers

Most businesses have very few income streams. A retail store might have online sales and in-person sales, for instance. Influencers have multiple income streams. These can include:

• Sponsored content
• Merchandise sales
• Affiliate partnerships

In addition to that, influencers have very complex tax deductions, including equipment expenses, promotional costs, and more. 

That creates a complicated landscape that requires significant experience and expertise to navigate. Not all accountants have those, so it’s important to choose wisely. How do you do that? It’s all about knowing the qualities to look for in one.

Qualities to Look for in an Influencer-Savvy Accountant

The right accountant can make a big difference in your success, while also improving profitability. Some of the most important qualities to look for when choosing an influencer-savvy accountant include the following:

• Industry Knowledge – The influencer industry is complex and very different from most other industries. It’s crucial to choose an accountant who can demonstrate familiarity with the different revenue streams and expenses content creators have. This will help ensure accuracy in tracking expenses and that you’re able to maximize your deductions.

• Proactiveness – You want an accountant who’s able to foresee industry-specific financial challenges and opportunities. This enables you to avoid pitfalls while taking advantage of unique prospects. 

• Confidentiality – The influencer industry is notorious for bleeding personal information into professional settings. It’s very easy to find the lines blurred, but that can cause serious issues. Make sure that your accountant is committed to confidentiality and keeping your personal and professional lives and finances separate. 

• Responsiveness – How easy is it to reach your accountant to discuss your financials? They should be very responsive and make themselves available when you need them within reason. Not only that, but you shouldn’t have to deal with missed deadlines or struggle to get in contact. 

• Adaptability – The influencer industry is not only very complex, but it’s also rapidly evolving. That means you need an accountant who can think on their feet and can keep up with the fast-paced change across influencer platforms and monetization methods.

Where to Start Your Search

With a better understanding of the qualities that set one accountant apart from another, it’s time to discuss where to find one. Several options can work, including the following:

• Recommendations – Often, the best place to look is within your own industry. Who do other influencers recommend? These will usually be the most experienced accountants, with deep expertise in the industry. 

• Online Platforms or Forums – Consider using online platforms and forums tailored to influencer needs. You’ll be able to get recommendations for accountants, as well as information about other influencers’ experiences so you’ll have a good idea of what to expect.

• Professional Associations – Finally, consider checking for recommendations from professional associations. The American Influencer Council, Association of Influencers and Thought Leaders, and Association of Influencers & Content Creators may list specialized accountants who have experience within the industry.

Red Flags to Watch For

While it’s important to know the qualities that indicate an effective accountant, it’s just as important to know the red flags that might indicate a problem or that the accountant does not have the experience required.

One of the biggest red flags is a lack of understanding about or downplaying the legitimacy of influencer revenue. Any accountant worth your time should appreciate that influencer revenue rises and falls significantly and that it can be considerable.

Another red flag is if the accountant overpromises on tax deductions or makes guarantees. The rule of thumb here is that if it sounds too good to be true, it probably is. Accountants worth your time and money will give you all the information necessary to make informed decisions, including informing you that there are no guaranteed returns.

You should also watch for accountants who do not understand tax deductions related to content creation. This is usually a sign that the accountant lacks experience with the influencer/content creator industry. Older accountants and those more familiar with traditional industries may balk at legitimate write-offs simply because they don’t “get” the industry.

Finally, watch out for accountants who obviously have limited experience with digital platforms and monetization methods. If they’re unfamiliar with the industry’s financial ins and outs, they won’t be able to help guide you toward financial stability.

The Benefits of a Specialized Accountant

You can choose to work with a general accountant or a specialist. Of the two, a specialist offers significant benefits. One of those is access to accurate financial advice tailored to your unique challenges as an influencer. Another is that you enjoy effective tax planning and potential savings. However, don’t underestimate the peace of mind that comes from knowing your finances are in knowledgeable hands.

Do I really need an accountant if I’m just starting as an influencer?

While you might manage on your own initially, as your financial situation becomes more complex, an accountant can save you time, stress, and potentially money. Eventually, you’ll need an accountant, and it pays to have an established relationship with someone you trust before that point.

How much should I expect to pay for a specialized accountant?

Fees vary based on location, services provided, and the accountant’s experience. It’s essential to get a clear understanding upfront and weigh it against the potential benefits.

Can’t any accountant handle my finances?

While any accountant might manage basic finances, those familiar with the influencer landscape can offer more tailored advice and potentially identify industry-specific opportunities or pitfalls. It’s the difference between having an experienced driver and trusting your fate to a generic GPS. 

How often should I meet with my accountant?

It depends on your individual needs and the nature of your financial activities. Some influencers may benefit from quarterly check-ins, while others might need more frequent consultations.

Conclusion

A well-chosen accountant can make an immense difference in your experience as an influencer and in your overall financial success. This is one of the most important decisions you’ll make and will have ramifications that last for years to come. From maximizing your deductions to minimizing your tax liability and helping you adapt as new platforms evolve, the right accountant is a critical asset.