10 signs you need an accountant for your influencer business

So you've mastered the art of capturing attention and cultivating an audience, but managing the financial side of your business still feels like learning a whole new language. 

I get it, accounting can be boring, confusing, and stressful. But it's also super important for your business success.

As an experienced professional accountant specialising in working with influencers and content creators in the UK, I'm here to help you understand when you might need to bring in some professional financial assistance. 

So, what are some signs that you need an accountant?

1. Your influencing business is growing

Remember when you celebrated your first brand deal? Things have come a long way since then. As you collaborate with more brands and diversify your income streams, the financial side of your business becomes more complex.

If you're juggling sponsored posts, affiliate marketing, merchandise sales, and more, an accountant can help you keep track and ensure you're making the most of your growing revenue.

2. You're losing track of your expenses

As an influencer or content creator, you probably have a lot of expenses to run your business and keeping up with them is crucial for your tax return. Things like equipment, software, travel, marketing, and more.

They're more than just scraps of paper. Are you keeping track of all of them? And are you categorising them correctly?

If not, you might be missing out on tax deductions or paying more taxes than you should. An accountant can help you track and organise your expenses and make sure you're maximising your deductions.

3. You're not sure how to file taxes as an influencer

Taxes can be confusing, and being an influencer adds another layer of complexity. You might have multiple sources of income, such as sponsorships, ads, affiliate commissions, merchandise sales, etc.

You might also have to deal with different tax forms, such as 1099s, W-9s, W-2s, etc. And you might have to pay quarterly estimated taxes or self-employment taxes. 

If you're unsure how to classify your business, what income to report, or what deductions you can claim, an accountant can be a lifesaver. They'll navigate the tax maze and help ensure you stay on the right side of HMRC.

4. You don't understand tax deductions influencers can take

One of the perks of being an influencer or content creator is that you can deduct a lot of your business expenses from your taxable income. This can lower your tax bill and save you money. But do you know what expenses are deductible and what are not?

Do you know how to calculate the percentage of your home office or car that you can deduct? Do you know how to document your deductions in case of an audit? An accountant can help you understand the tax deductions available to you and how to claim them properly.

5. You're spending too much time on accounting tasks

As an influencer or content creator, your time is valuable. You want to spend it on creating awesome content for your audience and growing your brand. You didn't become an influencer to spend your days poring over spreadsheets.

If accounting tasks are eating into your content creation time, i.e. you're spending too much time on accounting tasks, such as bookkeeping, invoicing, budgeting, etc., and taking time away from your core business activities, then it's time to bring in an expert. An accountant can handle the financial details so you can focus on what you do best. 

6. You're worried about HMRC audits

The mere mention of an audit can make anyone break out in a cold sweat. Audits are scary. And no one likes to deal with the IRS or other tax authorities. But as an influencer or content creator, you might be more likely to face an audit than other types of businesses.

Why? Because your income and expenses might be harder to verify or more unusual than other businesses. For example, if you travel a lot for work or claim a lot of deductions for things like clothes or makeup, the IRS might flag your return for review.

An accountant can help you avoid audits by filing your taxes accurately and keeping good records of your income and expenses. And if you do get audited, an accountant can represent you and handle the audit process for you.

7. You're not sure how to plan for the future

As an influencer or content creator, you might have a lot of goals for the future. Maybe you want to grow your audience, launch a new product or service, collaborate with other influencers or brands, etc. But do you have a financial plan to achieve those goals?

Perhaps you've considered investing in property or even starting a retirement fund. Do you know how much money you need to invest in that? Do you know how much money you need to save for retirement? Do you know how to protect yourself from financial risks?

An accountant can help you understand the financial implications, plan for the future, and create a financial strategy that aligns with your goals.

8. You're considering expanding your influencing businesses

If your business is doing well, you might be thinking about expanding it. Maybe you want to hire some employees or contractors, form a partnership or a corporation, open a physical location or an online store, etc.

But expanding your business also means expanding your accounting needs. You might have to deal with payroll taxes, employee benefits, legal fees, insurance costs, etc. An accountant can guide you through these growth stages. They can help you expand your business smoothly and handle the accounting aspects of it.

9. You've experience rapid growth

With rapid growth comes increased revenue, but also increased financial complexity. If your business has grown faster than you expected, you might be struggling to keep up with the accounting demands of it.

You might have more income and expenses than you can handle, more tax obligations than you can pay, more cash flow issues than you can manage, etc. An accountant can help manage this growth, ensuring your business stays financially healthy and ready for whatever comes next.

10. You're losing money and don't know why

If your business is losing money and you don't know why, that's a sign that something is wrong. If your bank account isn't reflecting your influencer success, you may have financial issues that need addressing.

Maybe your expenses are too high, your income is too low, your pricing is off, your marketing is ineffective, your competitors are stealing your customers, etc. Whatever the reason, you need to find out what it is and fix it as soon as possible.

An accountant can help you analyse your financial situation and identify the root cause of your losses. An accountant can also help you implement solutions to improve your profitability and turn your business around.

Conclusion

Running an influencer business isn't just about creating engaging content; it's also about managing your financial health. If any of these signs strike a chord, it might be time to bring in an accountant, get in touch with us today!

Remember, doing so is not an admission of defeat; it's a step towards creating a more successful, sustainable business. And we're always here to help make sense of the numbers, so you can focus on doing what you love.

If you're looking for a reliable and affordable accountant who specialises in influencer and content creation businesses, I highly recommend checking us at Capture accounting.

Thanks for reading this article and I hope you found it helpful. If you did, please share it with your fellow influencers and content creators who might benefit from it. Until next time, keep creating amazing content and making money from it!

To learn more about how to manage your finances as an influencer, check out our helpful blogs:

• Should I get a specialist influencer accountant?
• How often should influencers communicate with accountants?
• How do Youtubers get taxed?