Managing money as an Influencer might seem tricky, but it doesn’t have to be. Just like any other self-employed person, learning how to manage your finances as an Influencer is essential if you want your business to grow.
In this article, we’ll outline how to manage money as an Influencer, so that you can set yourself up for financial success and crush your business goals.
Understand the difference between revenue and expenses
Let’s start with the basics, managing money as an Influencer is all about tracking your revenue and your expenses.
Revenue is any money you make from your content; whether that be sponsorship deals from brands, ad revenue from Youtube, affiliate links and the like.
Expenses are what you have to invest in order to create that revenue. Examples might include, camera equipment and lighting, outsourced elements of your content (such as copywriting), SaaS subscriptions, or any other expense that contributes to the day to day operations of your business.
It’s important to track both your income and your expenses so that you have a clear idea of the profitability of your business.
Make sure you claim your deductions
When it comes to managing money as an Influencer, it’s all about keeping receipts! If you don’t claim all of the tax deductions you are entitled to, you could be paying thousands in unnecessary tax at the end of the financial year.
That’s why it makes good financial sense to enlist the help of a professional accountant as early on as possible. Accountants who specialise in online businesses (like the team at Infinity22) can help to make sure you claim deductions for everything you are entitled to so that you get the best possible outcome on your tax return.
Set up a separate bank account for your tax and super
Preparation is key when managing money as an Influencer. Each quarter you will be required to prepare a BAS statement and pay taxes on your quarterly earnings. Not only is this a legal requirement with the ATO, but it also helps you to stay on top of your taxes. Nobody wants to receive a mammoth bill from the ATO at the end of the financial year, so by staying on top of your taxes throughout the year, you can reduce stress at tax time.
And don’t forget about your superannuation! As an Influencer you won’t have the benefit of an employer making compulsory contributions to your super account, so make sure you keep future you in mind by setting aside a percentage of your income each month for super.
We recommend opening a separate bank account (preferably one that isn’t linked to your everyday spending accounts) for depositing a percentage of your income for tax and super.
Need help managing money as an Influencer?
At Infinity22, we specialise in accounting for online businesses. We can assist you with Accounting and Tax, Bookkeeping, Cash Flow Management, Budgeting, Forecasting and more. Accountant for Influencers
If you’re interested in learning more about how we can help you manage money as an Influencer, have a chat with one of our friendly team members by calling (61) 452 184 421 today.
