Updated: Oct 15, 2023
Influencer finances and taxes are particularly complicated. It’s essential to choose an accountant who understands the industry and your needs.
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.
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:
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.
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:
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:
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.
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.
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.
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.
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.
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.
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.