How often should influencers communicate with accountants?

If you have a successful business as a social media influencer, you likely have a lot on your plate - creating engaging content, growing your audience, collaborating with brands, and managing your finances... all while trying to have a personal life! Crazy, right?

Yet, you don't have to do it all alone. Many influencers invest in a specialist accountant to look after their financial interests to save them time, hassle and money. But how often should you call or message your accountant, and what about?

As a social media influencer, you should engage with your accountant regularly, not just at year-end, to plan for your tax liability, manage VAT and use their strategic insights to make smart business decisions. This proactive approach ensures that you remain compliant and maximise your earnings.

There are so many other benefits, especially if you use specialist social media influencer accountants. But how do you go about hiring an accountant? What do you look out for, what can you expect from them, and how often should you communicate? In this blog post, we will discuss all this and more so you know what you're getting yourself into.

Capture Accounting is a team of specialist accountants working with content creators, influencers and online entrepreneurs. Get in touch to arrange a call.

Why is it important to talk to your accountant regularly as a social media influencer?

By talking to your accountant, you can avoid common mistakes and pitfalls many influencers face.

Your accountants can also help you to optimise your income and make the most of your opportunities. Think of them as your trusted partner and advisor who can help you achieve your personal, professional and financial goals.

What do social media influencer accountants do?

They can help you with various aspects of your influencer business, such as:

• Managing your tax affairs, i.e. calculating taxable income, identifying allowable expenses, filing your tax return on time and informing how and when to pay tax.
  
  
• Claiming deductions for certain expenses, such as equipment, software, travel, etc., in order to reduce your tax bill.
  
  
• Setting up a separate bank account and using software to track your income and expenses.
  
  
• Planning for your retirement.
  
  
• Ensuring your compliance with HMRC and Companies House to avoid penalties.
  
  
• Creating a budget and managing your cash flow.
  
  
• Growing your income and diversifying your revenue streams.

Your accountant is more than just a number cruncher; they are your partner. Engaging with them regularly will help you approach your financial activities with clarity and help propel the growth of your influencer brand.

What do social media influencers talk to their accountants about?

If you’re starting to make serious money from being a social media influencer, then you need someone who knows what they’re doing to manage your finances on a real-time basis. That way, you can get on with creating content and leave the boring stuff, like recording income and expenses and filing tax returns, to them.

The influencer industry is a relatively new profession, so for TikTok influencers, YouTubers or Instagram influencers, having a specialist influencer accounting team, like Capture Accounting, can significantly benefit their personal brand.

You want to be able to have someone on hand that you can contact at any time to discuss the following:

Tax obligations

It's important to plan for your tax returns and payments in advance, to avoid any panic or confusion at year-end and to save you money. You don't want to end up paying too little or too much tax! Accountants can help you understand your tax liability, based on your business structure and income.

Updates on new legislation and regulations

The laws and rules that affect influencers may change over time. For example, new requirements for disclosing sponsorships, reporting income, or registering as a business entity.

Specialist social media influencer accountants can keep you updated on these changes and advise you on how to comply. If you're non-resident then you need someone that can keep tabs on where and how long you're spending time so you don't inadvertently fall foul of any rules that would result in a tax charge.

Setting up a business in a new country

If you decide to move to a new country (many influencers move to Dubai) or expand your business internationally, your accountant can help you set up your business in a new jurisdiction, deal with currency conversions, and understand the tax implications.

This is especially important as the influencer industry is becoming more global, with content creators often transcending geographical boundaries to reach a wider audience. Capture Accounting is best equipped to help you move your UK business to Dubai.

VAT invoices for sponsorships

Your accountant can help you register for VAT, create and send invoices, and claim back any VAT you paid on your expenses. This can be a tricky area, and having professional guidance can ensure compliance and accuracy.

A growing number of social media influencers in the UK have brand collaborations with companies that are based in the European Union or other countries that charge VAT.

 If that's something you're keen to explore, your accountant can help ensure compliance with international tax regulations (but not all accountants are even aware of this - so make sure you choose one that specialises in working with people like you).

Business advisory

Your accountant can help you with strategic planning, budgeting, forecasting, and other aspects of growing your business. They can help you analyse your financial performance, identify opportunities for improvement, and set realistic goals.

Joss Mooney, our accounting case study

Joss Mooney was referred to Capture Accounting by a fellow influencer. He only heard from his accountant once a year to do his tax returns. Given the meteoric rise in Joss’s following and income over 12 months, he was liable to register for VAT, but his accountant didn't have the necessary oversight of his finances to warn him.

Having taken over, we’ve managed to get Joss back on track and save over £50,000 in potential tax penalties! 

When are the most crucial times to have meetings with your accountant?

While there is no definitive answer to "how often should influencers communicate with accountants", there are certain crucial times to make sure you arrange a discussion.

The main thing is having someone you can talk to, ask a question whenever you need to without having to worry about being charged for every minute you spend with them.

At Capture Accounting we never charge by the hour - we give our clients unlimited email and telephone support for a fixed monthly subscription.

Before you start your business

If you are just starting out as a content creator, you may want to consult an accountant to help you choose the best business structure for your situation, register your business name and domain, set up your accounting system and guide you on how to pay tax. 

This initial step is crucial for laying a solid financial foundation for your self-employed small businesses.

At the end of each quarter

Quarterly reviews can help you analyse your financial statements, track your progress toward your goals, and plan for the next quarter. You can also use this opportunity to ask any questions or raise any concerns about your business.

At the end of each year

An annual year-end meeting with your accountant is essential to plan for your tax return. It's also a great chance to evaluate your overall performance and celebrate your achievements!

Whenever you face a major decision or change

The world of content creation and influencer marketing moves fast. You may also want to contact your accountant whenever you face a major decision or change in your business, such as launching a new product or service, signing a big contract, hiring or firing staff, moving to a new location, or changing your fees.

Conclusion

Whether you are a TikTok, Instagram, or YouTube influencer, as a digital entrepreneur, having a clear understanding of your finances, income, and expenses is vital for a successful and sustainable career.

Your accountant can become a trusted partner in this journey, helping you navigate complex areas like income tax, deductible expenses, and financial planning. How often you engage with your accountants is up to you, but regular contact can help you keep more of your earnings, avoid penalties and grow your brand.

If you find a specialist in influencer accounting, like Capture Accounting, it can make all the difference to the rate of your business growth and success - and take the stress away of having to deal with all the accounts and tax related stuff!

Whether understanding tax regulations, managing your ad revenue, or making informed decisions to grow your revenue streams, a good accountant can provide invaluable advice and services to enable you to focus on what you love most - creating content.

So, don't let financial management take a back seat or overwhelm you. Reach out to Capture Accounting today, and take control of your financial planning and future.