6 min read
1. Record all transactions
Lastly, if you get paid in kind rather than cash, you need to record the market value of the gifted item for tax purposes. Gifted items can be tricky but must be included in accounting for social influencers – which brings us to our next point.
2. Be careful of freebies
3. Plan for taxes in advance
The influencer life can be super-lucrative, from sponsorship deals to affiliate income streams. You do not want to spend it all, though! Keep aside a chunk for paying your annual tax bills, and consider tax-free investments for the rest. An accountant for digital content creators can help you manage your income to build wealth and minimise your tax burden.
4. Invest in an accounting software
5. Consider operating as a limited company
6. Know what other allowable expenses you can claim
In accounting for content creators, you do not have to pay tax on several categories of expenses. These include (but are not limited to):
- Legal expenses
- Travel costs for work trips
- Advertising and marketing costs
- Office rent, maintenance and utility costs
- Cost of maintaining your website and email list
- Cost of outsourcing tasks to other professionals
- Cost of equipment like phones, cameras or computers
- Cost of software used to edit video/audio content you create
- Cost of getting trademarks and/or copyrights for your content
- Cost of business-related subscriptions, such as to a site providing licensed images
7. Hire an accountant: Work with Golding Accountancy
- Tax reporting
- Analysis of each income stream
- Applying for relevant benefits and exemptions
- Visibility on the inflow and outflow of money
- Advice on navigating an economic boom (or bust)
Luckily, we possess the necessary expertise to assist you in managing your digital content creation business in a professional manner.
We are equipped to guide you on matters such as taxation, determining your self-employment status, and identifying eligible business expenses for a deduction.