Content creators, influencers, YouTubers, etc. are not exempt from accounting or bookkeeping for their business. In fact, that’s how many content creators find themselves in trouble during tax time – they have a lack of financial records.
Bookkeeping for content creators is a backend task that should be completed daily, weekly, or bi-weekly depending on the frequency of your transactions and the amount of time you have to work on it. If you constantly have expenses and recurring income, consider doing your bookkeeping every morning. If you have few expenses and your income is spaced, you can get away with bookkeeping bi-weekly.
Although bookkeeping goes hand in hand with accounting, it is a separate task. Here are some simple tips that you can use to ensure your bookkeeping is done correctly:
*If you’re looking for more tips and tricks or a more thorough explanation of bookkeeping and accounting for influencers, check out our Business Savvy Influencer Course.
Bookkeeping is a simple task that is easy for anyone to DIY, provided they have the basic knowledge and access to track transactions – both income and expenses. But, just because it’s simple, doesn’t mean you should dive in without a little bit of know-how.
Let’s look at our top bookkeeping tips for content creators:
Bookkeeping and accounting have their own set of terms and terminology. For example, you need to know the difference between income and expenses along with more difficult terms like cash flow and bank reconciliations.
Whether you decide to use an online accounting and bookkeeping tool like Quickbooks or opt for a fancy Excel/sheets bundle from Etsy, you need to stay organized in your bookkeeping. Keep it all in one place and choose something that allows you to assign your transactions – one that allows you to look at monthly/yearly reports is a bonus!
Although tracking your expenses or purchases in your bookkeeping software is great, you want to keep a copy of your receipts and paid invoices. If you’re audited in the future, these are crucial when you need to back up your transactions to the IRS and help you prepare for tax time as an influencer.
You may choose to skip the LLC, but you should still opt for an EIN and open a business bank account. Keeping this separate allows you to compartmentalize your purchases and “pay” yourself out of your business account rather than comingle funds. If you do happen to purchase your personal, you should pay yourself back and make a note of it in your bookkeeping records.
For the most part, yes, you can DIY your bookkeeping as an influencer or content creator. Bookkeeping is mostly keeping records, which can be done with little guidance – although it can be time-consuming as your business grows.
Once your business exceeds what is manageable by yourself – or the systems you’ve set up – you should consider investing in a bookkeeper or accountant. If you’re ready to DIY your bookkeeping and accounting as a content creator or influencer, join the Business Savvy Influencer Course today!