4 Reasons Why rising Youtubers and TikTokers Should Hire Accountants for Content Creators
Content creators and Influencers have unique businesses, and their choice of professionals should reflect that. As a Creative, you may not be as up to speed on the "business" things. Here's why hiring an accountant should be at the top of your list.
Benefits of Having Financial Oversight from a Professional
There are many benefits to having a CPA on your team. From determining what is income to helping you get control of your overall business finances.
Understanding Your Tax Obligations
As a business owner, you have a requirement to report for Income Tax. But did you know that you might have other tax filings that might be required? Consider sales tax. Many states tax certain service streams of income.
If you have a separate legal entity, such as a limited liability corporation (LLC), then you may have to file annual tax returns for it as well. This depends on your tax elections. Having good tax planning can significantly lower the taxes on your personal tax returns. Let the accounting firm give you tax advice to determine the best business entity for your Content Creation business.
Knowing Your Financials
How do you increase your profits and cash flow? These are things a good accountant can help you with. It's not just about providing financial statements, but financial advice! Maybe you need to separate your income streams or channel to determine which part of your business is most profitable. You might need some advice on your business model, like should you consider adding affiliates.
Improved Financial Efficiency and Accuracy
Do you just look at your financial information a couple of times of year for taxes? You are missing some valuable opportunities! A CPA will help you with bookkeeping and financial accuracy, but they will also make sure your have made timely tax payments throughout the year to ensure no surprises.
Additionally, they can help provide recommendations on professional management and financial efficiencies. These are key to increase your profit.
Access to Sound Business Advice
Probably the most valuable thing that a CPA can provide Youtubers, TickTockers, and other content creators is with business advice. It's not just about tax strategies to lower your taxes, which is important. It is also about provide guidance in business decisions, like should I hire an employee. They can also help with over financial planning, including personal financial goals.
Why a CPA?
In many states there are no licensing requirements to provide accounting and tax services. You need a license to cut someone's hair, but not to do their taxes. Go figure!
A Certified Professional Accountant (CPA) has passed rigorous requirements, including education and testing. In addition, they are required to complete forty hours of continuing education each year. They have broad understanding of business, legal, and financial issues affecting businesses.
You can also consider hiring an Enrolled Agent (EA). Although not as rigorous as a CPA, EA's are tested and approved by the Internal Revenue Service, and have continuing education requirement. Their focus is solely taxes.
Finding the Right CPA for You
When hiring any professional, it is important to find one that meats your needs. Like physicians, CPA's are specialized.
Do Your Research and Ask Questions
Do your research and ask questions. Many CPA's will not have any experience with the nuances of the content creators industry. One of the most important qualifications any CPA can have is your ability to communicate with them. Make sure that you are comfortable asking questions and that you understand their answers.
Consider Experience in the Industry
When selecting a CPA, industry experience is crucial. You don't want to hire someone that doesn't even know what a social media influencer is. Although they may have the technical qualifications, you want someone that can speak your language and knows your business.
Questions to ask are do they understand your revenue streams? Do they understand the tax laws applicable to your industry? Do they know what regulations you have to follow?
Understand Their Fees and Payment Options
Many CPA's still bill by the hour. You do not want this arrangement. In order to facilitate communication, you want a fee structure that provides a menu of services for a set fee.
If you are hiring them and behind on your bookkeeping and taxes, ask them what their fees to catch you up are, what payment options are available, as well as payment methods.
Does the CPA Use Technology to Help Streamline Services?
Most CPA's are up to date with their technology tools, but not all. You don't need to understand all of the software platforms they use to do their work, but you do need to know if they can use the software YOU use.
One way to determine technologically savvy is to ask about bookkeeping automation and financial reporting. The less you have to be involved in the process the better.
Conclusion
In conclusion, hiring a CPA as a rising YouTuber or TikToker can be a game-changer for your content creation career. From maximizing your earnings and minimizing your tax liabilities to ensuring financial stability and compliance, a CPA can provide the expertise and guidance you need to take your online presence to the next level. Don't let financial stress hold you back from reaching your full potential. Invest in a CPA and watch your content creation empire soar!