How often should influencers communicate with accountants?

If you have a successful business as a social media influencer, you likely have a lot on your plate - creating engaging content, growing your audience, collaborating with brands, and managing your finances... all while trying to have a personal life! Crazy, right?

Yet, you don't have to do it all alone. Many influencers invest in a specialist accountant to look after their financial interests to save them time, hassle and money. But how often should you call or message your accountant, and what about?

As a social media influencer, you should engage with your accountant regularly, not just at year-end, to plan for your tax liability, manage VAT and use their strategic insights to make smart business decisions. This proactive approach ensures that you remain compliant and maximise your earnings.

There are so many other benefits, especially if you use specialist social media influencer accountants. But how do you go about hiring an accountant? What do you look out for, what can you expect from them, and how often should you communicate? In this blog post, we will discuss all this and more so you know what you're getting yourself into.

Capture Accounting is a team of specialist accountants working with content creators, influencers and online entrepreneurs. Get in touch to arrange a call.

Why is it important to talk to your accountant regularly as a social media influencer?

By talking to your accountant, you can avoid common mistakes and pitfalls many influencers face.

Your accountants can also help you to optimise your income and make the most of your opportunities. Think of them as your trusted partner and advisor who can help you achieve your personal, professional and financial goals.

What do social media influencer accountants do?

They can help you with various aspects of your influencer business, such as:

• Managing your tax affairs, i.e. calculating taxable income, identifying allowable expenses, filing your tax return on time and informing how and when to pay tax.
• Claiming deductions for certain expenses, such as equipment, software, travel, etc., in order to reduce your tax bill.
• Setting up a separate bank account and using software to track your income and expenses.
• Planning for your retirement.
• Ensuring your compliance with HMRC and Companies House to avoid penalties.
• Creating a budget and managing your cash flow.
• Growing your income and diversifying your revenue streams.

Your accountant is more than just a number cruncher; they are your partner. Engaging with them regularly will help you approach your financial activities with clarity and help propel the growth of your influencer brand.

What do social media influencers talk to their accountants about?

If you’re starting to make serious money from being a social media influencer, then you need someone who knows what they’re doing to manage your finances on a real-time basis. That way, you can get on with creating content and leave the boring stuff, like recording income and expenses and filing tax returns, to them.

The influencer industry is a relatively new profession, so for TikTok influencers, YouTubers or Instagram influencers, having a specialist influencer accounting team, like Capture Accounting, can significantly benefit their personal brand.

You want to be able to have someone on hand that you can contact at any time to discuss the following:

Tax obligations

It's important to plan for your tax returns and payments in advance, to avoid any panic or confusion at year-end and to save you money. You don't want to end up paying too little or too much tax! Accountants can help you understand your tax liability, based on your business structure and income.

Updates on new legislation and regulations

The laws and rules that affect influencers may change over time. For example, new requirements for disclosing sponsorships, reporting income, or registering as a business entity.

Specialist social media influencer accountants can keep you updated on these changes and advise you on how to comply. If you're non-resident then you need someone that can keep tabs on where and how long you're spending time so you don't inadvertently fall foul of any rules that would result in a tax charge.

Setting up a business in a new country

If you decide to move to a new country (many influencers move to Dubai) or expand your business internationally, your accountant can help you set up your business in a new jurisdiction, deal with currency conversions, and understand the tax implications.

This is especially important as the influencer industry is becoming more global, with content creators often transcending geographical boundaries to reach a wider audience. Capture Accounting is best equipped to help you move your UK business to Dubai.

VAT invoices for sponsorships

Your accountant can help you register for VAT, create and send invoices, and claim back any VAT you paid on your expenses. This can be a tricky area, and having professional guidance can ensure compliance and accuracy.

A growing number of social media influencers in the UK have brand collaborations with companies that are based in the European Union or other countries that charge VAT.

 If that's something you're keen to explore, your accountant can help ensure compliance with international tax regulations (but not all accountants are even aware of this - so make sure you choose one that specialises in working with people like you).

Business advisory

Your accountant can help you with strategic planning, budgeting, forecasting, and other aspects of growing your business. They can help you analyse your financial performance, identify opportunities for improvement, and set realistic goals.

Joss Mooney, our accounting case study

Joss Mooney was referred to Capture Accounting by a fellow influencer. He only heard from his accountant once a year to do his tax returns. Given the meteoric rise in Joss’s following and income over 12 months, he was liable to register for VAT, but his accountant didn't have the necessary oversight of his finances to warn him.

Having taken over, we’ve managed to get Joss back on track and save over £50,000 in potential tax penalties!