Regardless if you are a passionate food vlogger or a globetrotting YouTuber, you are part of a rapidly growing industry of digital content creation. Despite being a relatively new profession, content creators are some of the most well-compensated professionals today. And with that comes tax obligations that you cannot dismiss.
The Australian government has digital content creators paying income tax as early as 2015. In the eyes of the Australian Tax Office, social media influencers are considered professionals and are required by law to file their taxes properly.
Does that mean that you have to hire an influencer accountant after you publish your first video? Not necessarily.
However, below are some signs that you may need to hire an accountant to get your finances in order and avoid paying for unnecessary charges.
Your Content Is Earning a Lot of AdSense
Content creators know that uploading a video on YouTube does not automatically give you the ability to earn from it. Unless you have at least 1,000 subscribers in your YouTube channel, Google AdSense will not give you the opportunity to monetise your content.
If you choose to monetise your content and receive at least $18,201 in revenue within a financial year, you might consider hiring a professional influencer accountant. Your accountant can help you figure out how much you need to pay while applying the appropriate tax deductions.
You Are Partnering with Brands
Social media influencers earn from AdSense by creating content that people view and adding ad spaces that advertisers can bid on. While most companies will take this route, some would want to work directly with an influencer so that the entire content will be dedicated to them and their product or services. When this happens, you may want to get a knowledgeable accountant on your team.
Regardless if you are advertising a service for a company or collaborating with them to create a new product, taxes are part of the process. Aside from income taxes, you may have to deal with withholding taxes and other business-related taxes. It can be quite a daunting task, so you may need to call for some help.
When You Want to Give Back to the Community
Content creators can be passionate about their advocacies to the point that they are willing to put money down on it—literally. Some would donate large sums to a charity of their choice or even rope people in through charity livestreams. In either case, you may want to have your accountant in the wings.
Donating to a cause is not taxable by Australian tax laws. However, you can get tax deductions for donations to organisations with a deductible gift recipients (DGR) status. When you have an experienced accountant on your side, they can sort out your finances while you continue with your philanthropic activities.
Conclusion
As a content creator, life is not all glamorous. You work hard to produce the best content you can for your subscribers and followers while leaving little room to get your finances in check.
When you are earning at least $18,201 per financial year, working with brands, and giving back to the community or funding a cause, that is the time to hire a trustworthy influencer accountant. You can let them handle the finances while you do what you love the most—create.
If you are looking for some of the best influencer accountants in Australia, then turn to The ECommerce Accountant. We are an award-winning accounting firm that offers top-notch accounting services and sound business advice to content creators, online entrepreneurs, and businesses alike. Team up with us today!