In today’s digital age, influencer marketing is becoming a crucial part of the overall marketing mix, making effective influencer accounting more important than ever before. Accountants can help influencers set up effective record-keeping systems, ensuring they have all the necessary documentation and receipts for tax purposes. Income for creators can be extremely volatile as it follows the market trends and consumer purchasing comfort levels. Having a separate credit card for your business expenses helps you track spending even more easily. Every swipe of this card is for your business needs, so you don’t have to sift through statements to figure out work costs. When you don’t keep Partnership Accounting track of those fees separately, it’s easy to lose track of what you’re actually paying just to get your money.

Expenses specific to digital platforms

Over the course of her entire online career from April 2009 to December 2023, Julia earned $610,464.83 on ad revenue from a total of 224,637,887 YouTube video views, she shared in a January vlog. If you are have any questions, leave a comment below or reach out to a bookkeeper at Bench. I recommend this method if you’re making more than $2k/month as an influencer, but if you are only making $2k/month then at $249/month, this might seem like a big expense for you. You have more time to focus on the revenue-generating activities of your business. With your clear Revenue/Expense breakdown in Bench, you can see how much you make each quarter, which helps estimating your quarterly taxes much easier.

Influencer & Content Creator Accounting Services with Hogan CPA

If you’re a Mac user in need of accounting software, look no further than FreshBooks. Not only does it allow for multiple users, making it perfect for small businesses, but its user-friendly interface also makes it easy for solo entrepreneurs to navigate. The use of micro-influencers, who have smaller but highly engaged audiences, can QuickBooks result in higher ROI than working with high-profile influencers. These influencers often specialize in specific niches, allowing brands to target specific consumer markets and drive sales effectively.

Handle Personal Finances

The services of a qualified financial advisor are more important than ever in today’s uncertain economic climate. Aside from that, here are the reasons why accounting for influencers is beneficial. After you open a business checking account with your LLC or other entity, you can have payments directly made to your business instead of in your personal name. All payments need to be tracked, invoices sent to clients, invoices downloaded from the websites you make money from (affiliate, membership, ecom) and more. Join over 35,000 US-based business owners who have streamlined their finances and have grown their businesses with Bench.

Use a dedicated credit card for business expenses

With creativity, authenticity, and reach, they connect with audiences on a personal level that traditional advertising struggles to achieve. Through influencer life, it’s easy to accounting for content creators overlook the financial aspects of this job. In the past decade, the influencer marketing industry has boomed in the United Kingdom. From fashionistas showcasing the latest trends to tech geeks reviewing gadgets, influencers have become an integral part of the marketing mix. If your social media is at the stage where it requires accounting support, or perhaps you are considering switching accountants, please don’t hesitate to contact us to arrange a consultation. Approved Accounting understands the nuances of the influencer sector and can provide valuable advice on how to capitalise on opportunities and produce the best revenues and profits from your online brand.

• While all this money ends up in your bank account, each type of income needs to be accurately tracked and categorized in your books.
• We mention this because all your business expenses will be tracked in your accounting and personal transactions will come up as a red flag to us and the IRS.
• We can help you set up your chart of accounts and other Quickbooks settings for optimal use.
• We provide medium size and startup companies the tools and resources they need to focus on capital re-investment and growth.
• One of the biggest red flags is a lack of understanding about or downplaying the legitimacy of influencer revenue.
• All payments need to be tracked, invoices sent to clients, invoices downloaded from the websites you make money from (affiliate, membership, ecom) and more.
• We can take care of your finances so you can concentrate on making engaging content for your online audience.

All visual media production professionals and firms need proper tax planning and preparation. This way, they’ll be able to proactively manage their finances and make savings for their next tax filing. We handle the bookkeeping for you but sometimes we’ll need your input, especially at year-end. On average, expect to spend 15 minutes each month answering questions for your bookkeeper, or uploading supporting docs. Our team of experts is well-versed with the financial intricacies of the influencer industry and will adapt their methods to your personal brand’s distinct requirements. Every month, your personal bookkeeper arranges all your influencer-related transactions and puts together your financial statements.

After appearing on Netflix’s dating show Love Is Blind in 2022, the pair pivoted to social media stardom and said they each made $500,000 in less than two years as influencers. Other times, he’s making bank by offering discounts on his own branded makeup products. The Dance Moms alum revealed that she made “six digits a month, easy” on YouTube videos as a 13-year-old.

Bookkeeping & Tax

• Explore various income avenues like merchandise sales, sponsored content, affiliate marketing, or even creating a course or writing a book related to your niche.
• The first lesson being to ignore clichéd stereotypes and find your own personal style that will make you feel your most confident.
• They ensure all transactions are accurately documented, which helps keep a clear picture of your financial health.
• For instance, both need to meticulously track income and expenses to maintain a clear financial picture.
• This helps influencers adapt to any changes that may affect their financial situation.
• Let’s have a look at why separating finances for digital creators matters so much.

Dive into our full article to explore a detailed comparison of these approaches and find the best fit for your business needs. Additionally, using accounting software can help you stay organized and plan out your influencer marketing strategy by providing a clear overview of your income sources and expenses. As an Instagram influencer or social media influencer, it can be difficult to keep track of your expenses.

We can work with your current accountant or bookkeeper if you are not already using our Outsourced Accounting Services.