Under Australian law, influencers are considered performing artists. As such, they must face tax accordingly like everyone else. That’s why, regardless of whether you found online success through YouTube, Instagram, TikTok, or other social media platforms, you need to have an accountant on your team.
Here are the prime reasons why you need an influencer accountant today.
They Know How to File Your Tax Returns
You need to state your income source to file your taxes properly as an influencer. The revenue stream for company employees and business owners are straightforward. Employees get their income from their salaries, while business owners gain profit from the business they run. But for influencers like you, the revenue stream can be a little complicated.
You can earn money through AdSense, brand promotions, brand collaborations, and merchandise sales. Even though you know you have to file your taxes, the question is how you can do it properly. With varying sources of income, filing your returns can be confusing.
Accountants are professionals who are well-versed in the intricacies of taxes. They can file your taxes for you and ensure to do it correctly.
They Can Inform You of What Gifts You Should Declare
When you reach a certain level as an influencer, you will receive gifts. Some of them will come from your admiring fans, while others fall under public relations (PR) packages.
Companies send out PR boxes to influencers hoping their products will appear on their chosen platform. Although you, as an influencer, are not legally bound to promote all the PR packages you receive, you may still need to include them in your tax returns.
The Australian Tax Office has specific guidelines regarding gifts. But if you have an accountant on your side, you can easily know which ones you should declare on your taxes and which you can leave out.
They Can Set Your Path to Business Success
If you are serious about going full-time as an influencer and your income becomes more consistent, you can turn your once-hobby into a business. You first need to apply for an ABN.
An Australian Business Number (ABN) is an eleven-digit identification number the Australian government issues to businesses and organisations. The ABN is crucial for keeping tabs on your business transactions for tax purposes. ABN is significant if you earn more than $75,000 and would have to register for Goods and Services Tax (GST).
These things may be overwhelming to hear, but they are vital for growing your brand. When you work with your accountant and get all of these legalities in order, you can branch out and promote other companies.
They Can Minimise the Taxes You Pay
Business owners enjoy certain tax benefits. But before they can claim deductions, they first need to declare the expenses they incurred when running their company.
As an influencer, you do not have the same business expenses as a shop owner. Your overhead and running expenses revolve around your rent, internet bill, utility bills, and groceries. If you think you cannot claim deductions on expenses you incur at home because they seem personal, it is time to call for an accountant.
Influencer accountants can assist you in differentiating between personal and business expenses. They also know which benefits you can claim and the cap on them.
Conclusion
As an influencer, your primary concern is to produce quality content people will watch and engage with. That is why you should focus on creating. Leave the financial aspects of it all to a reliable influencer accountant.
Your accountant can help you file your taxes, determine which gifts you should declare, get you tax deductions, and set your path to business success. But most importantly, they can lighten your burden and allow you to be as creative as you want.
The ECommerce Accountant is an award-winning accounting firm home to some of the best influencer accountants in Australia. Whether you are a budding vlogger or an established online personality, we are at your service. Team up with us today!