The rise of social media has created a new generation of entrepreneurs: influencers. Whether you’re creating content on YouTube, Instagram, TikTok, or any other platform, monetizing your brand comes with its own set of financial challenges. This raises a common question: do influencers need an accountant? The answer often depends on the size and complexity of your business, but in most cases, having an accountant is highly beneficial. Here’s why.
1. Navigating Taxes as an Influencer
As an influencer, your income doesn’t typically come from a traditional salary. Instead, it may include:
Brand deals and sponsorships
Affiliate marketing
Ad revenue
Merchandise sales
Digital product sales
Each of these income streams may require different tax treatments, and you’ll need to declare them all to HMRC if you’re in the UK.
How an Accountant Helps:
Ensures accurate tax filing and helps you avoid penalties.
Identifies allowable expenses, such as equipment, software, travel, and office space, to reduce your tax liability.
Advises on VAT registration if your income exceeds £90,000 (current threshold as of 2024).
2. Managing Business Finances
Influencers often operate as sole traders, but as your income grows, you may need to consider setting up a limited company. This brings added complexity to managing your finances.
How an Accountant Helps:
Helps you decide the most tax-efficient business structure.
Tracks income and expenses to ensure financial clarity.
Provides cash flow forecasts to help you plan for the future.
3. Keeping Up with Compliance
Tax laws and regulations are constantly changing, and as an influencer, you’re responsible for staying compliant.
How an Accountant Helps:
Keeps you up to date with changes in tax laws that affect your business.
Ensures you’re meeting deadlines for tax returns, VAT, and other filings.
Manages record-keeping requirements, saving you time and stress.
4. Saving Time and Reducing Stress
As an influencer, your focus should be on creating content and growing your brand, not worrying about spreadsheets and tax codes.
How an Accountant Helps:
Handles financial tasks so you can focus on your business.
Provides peace of mind by ensuring your finances are in order.
Helps you avoid costly mistakes that could impact your earnings.
5. Scaling Your Business
When your influencer career takes off, your financial situation becomes more complex. You might hire staff, collaborate with agencies, or expand into new revenue streams.
How an Accountant Helps:
Guides you through financial planning for growth.
Advises on payroll, pensions, and benefits if you hire employees.
Helps you navigate international taxes if you work with global brands.
Signs You Need an Accountant
You’re Earning Consistently: If your influencer income has become a reliable source of earnings, it’s time to consider professional help.
You Struggle with Taxes: If tax forms and deadlines confuse you, an accountant can provide clarity.
You Want to Scale Your Business: Planning for growth often requires financial expertise.
You’re Spending Too Much Time on Admin: An accountant can take over these tasks so you can focus on your core work.
Choosing the Right Accountant
Look for an accountant with experience in working with influencers or creative professionals. They’ll understand the unique challenges of your industry and be able to offer tailored advice.
Conclusion
While you might manage your finances on your own at the start of your influencer journey, as your business grows, the benefits of hiring an accountant become clear. They’ll not only help you save money and stay compliant but also free up your time to focus on what you do best—creating amazing content. Investing in an accountant is an investment in your business’s long-term success.
