Content creation can be a lucrative source of income, but it is important to treat it like any other business in order to effectively manage income and expenses while remaining compliant with tax codes. Here are five simple accounting tips for content creators that can help you reach those goals.
1. Invest in Quality Accounting Software
Even if you use a CPA to help keep your finances in order, it is a good idea to buy an accounting program like QuickBooks, Xero, or FreshBooks and spend a few hours learning how to use it. This will help you track expenses, manage invoices, and keep your transactions documented for tax purposes, and if you do use an accounting firm, it can help make their job easier.
2. Record All Your Transactions
Whether you are buying pens for your office, paying a vendor, or receiving payment from an affiliate marketing program, it is important to save receipts or invoices, where possible, and record the transaction properly. This makes it easier to calculate income, track expenses, and maximize your deductions at the end of the tax year.
3. Account for Gifts Properly
One of the benefits of being a content creator is receiving free items in return for creating a review. Even if these gifts have minimal value, it is important to record those values. Gifts and free items are considered taxable income by the IRS, so the market value of these items must be accurately tracked.
4. Maximize Your Deductions
Do some research so that you know what you can safely and legally deduct from your taxes at the end of the year. Everything from physical supplies and web hosting costs can be deducted, as long as they are used exclusively for your business and even a portion of some things used both personally and professionally can be deducted, such as mobile phone plans, utilities for a home office, or transportation costs.
5. Create a Solid Financial Plan
If you want to stay on top of your income and expenses, it is important to create a comprehensive financial plan to track revenue, manage expenses, and plan your taxes. This plan will help you budget accordingly and ensure that all the needs of your business are met.
Professional Accounting for Content Creators in Dallas
Do you need help managing your finances as a content creator? Let our skilled team at Gurian CPA help. We serve clients in the Dallas and Houston areas, and we feature everything from accounting and bookkeeping services to tax planning, tax preparation, payroll services, business entity formation, and more. We feature CPAs who are experienced in the content creation industry, and we are committed to the success of your business.
Contact Gurian CPA today at (469) 306-9866 to learn how we can make accounting easy for content creators in the Dallas area.
