So you’ve built your online brand from the ground up, your followers are growing by the second, and you’re finally earning money as an influencer — but where are your funds going?
If you want to continue doing what you love for a living, staying on top of your books is non-negotiable. Apart from helping you stay on HMRC’s good side, keeping an eye on all your business transactions can give you a more accurate picture of your finances.
Here’s why influencers should put bookkeeping at the top of their to-do list.
What is bookkeeping?
Essentially, bookkeeping is about monitoring the money you make and spend in your business and making sure that everything adds up.
The process involves gathering all documentation relating to your business transactions, including bills, invoices and any other payments coming in or out of your business bank account. From then on, you use your books to record every new payment so you can see how money flows in and out of your business.
In the past, you’d have to write this all down in a ledger, but nowadays you’ll use cloud accounting technology, making balancing your books is easier than ever.
Why do I need bookkeeping?
Know where you stand
Influencing isn’t like your typical 9-5 job. From ad revenue and sponsorship deals to merch sales and Patreon subscriptions, online personalities rarely have one source of income.
And your pay is only half the story. Business expenses like software subscriptions, travel costs and recording equipment all add up. Bookkeeping can also help avoid any nasty surprises. If you don’t keep track of all your income and expenses, how will you know whether you’re turning a profit?
Submit tax returns like a boss
If filing your tax return gives you a headache, good bookkeeping is the best painkiller on the market. For self-employed influencers and limited companies alike, keeping detailed business records is essential for completing your annual tax return.
You’ll need to have all your financial details to hand if you want to pay the right amount of tax. Claiming business expenses on your tax return can also significantly reduce your tax bill — so don’t throw away your receipts!
Become an expert in your business
Getting into the habit of bookkeeping can give you a greater understanding of how cash moves in and out of your business. You’ll find it much easier to draw up balance sheets and cashflow forecasts when everything’s in order.
This can make you an expert in your business, allowing you to make better-informed decisions about your finances. You may even spot areas where you can save or make more money as a result.
Collaborate with a bookkeeper
Much like content creation, bookkeeping is a task that requires your constant attention. As a result, the process can be time-consuming, potentially forcing you to rush and make mistakes — particularly if you already have a lot on your plate.
While crunching numbers is second nature to us as accountants, we know you didn’t become an influencer to balance your books. So why not bring us on board?
Our tech-driven bookkeeping services include support with everything from setting up cloud accounting software to helping you maximise your business expenses on your tax return. With our help, you’ll feel more in control of your finances and have more time to do bigger and better things.
Need a hand balancing your books? Let’s chat.