The Ultimate Bookkeeping Guide for Youtubers (What, Why, and How)
Being a successful Youtuber is not that easy. One needs to get a proper understanding of every single aspect – from increasing traffic to making money to keeping proper track of earnings made. For this, Bookkeeping is a skill that Youtubers need to master for better control of business finances. But it is something that might be difficult and frustrating to understand at the same time for many.
In the United States, most YouTubers find the handling of taxes quite difficult. If you want to be a part of a race of many successful influencers out there, you must consider more than just having a lot of followers. We are offering an ultimate Bookkeeping guide for YouTubers covering – what is Bookkeeping, Why you need it, and how it works?
Let’s get started without wasting a single minute!
What Is Bookkeeping for Influencers?
Bookkeeping for bloggers has a simple meaning – keeping track of earnings and invoices organized. The whole purpose is to provide the most accurate and up-to-date financial information so influencers can have an idea of where their Youtube business is today. There are mainly three main reasons why good bookkeeping is a must for YouTubers:
- To keep everything organized related to tax.
- To determine how Youtube business is performing and use that relevant information to double earnings.
- To save on taxes and get rid of taxes.
So Let’s Learn The Basics Of Bookkeeping Guide For Youtubers
There are some Bookkeeping basics that almost every influencer needs to be aware of.
Revenue: The revenue is money that influencers make from Youtube. These payments usually come from sponsorships, affiliate marketing, the sale of digital products and physical products, and memberships. To keep a proper track of revenue, a YouTuber needs to have invoices in place. That’s where Bookkeeping comes into the picture and makes things easier by allowing one to keep proper track of each and everything.
Expenses: Here expenses mean the money you spend on some necessities of influencer business in return for good earnings. The most common expenses that a Youtuber has to pay for are cameras, home office, travel expenses, and others. To keep proper track of these expenses, there is a need for proper invoices and receipts in place. Bookkeeping somewhere helps you perform this task most safely.
Free 30-Min Strategy Session
By the end of this Strategy Session, you will have a clear understanding of the next steps you can take for your business to take advantage of the tax deductions you are missing out on.
What Is Profit?
Profit = Revenue – Expenses
Revenue refers to the total money you make and expenses you pay for various necessities you have to fulfill for your business. And the total revenue minus all those expenses refers to profits that Youtuber can make. The profit is also known as taxable income.
Useful Tips For Influencers To Best Handle Those Expenses
Being a Youtuber, there is a hassle of handling Youtuber business and that’s why we are here with a few tips for you to make things easy:
Keep Proper Track of Invoices & Receipts: If you’re a Youtuber and your business is doing good, it is important for you to handle your responsibilities better and one is keeping proper track of invoices and receipts. The reason behind this is that your business is already reported to the IRS, you have to keep all old records in place as proof.
Do Your Accounting Weekly Basis: A Youtube influencer has to perform accounting every week no matter, whether it is done manually or with automated software. Bookkeeping helps you manage the various specifics of the influencer business.
Adopt Bookkeeping Methods: Now that you have proper knowledge of the basics, your next step is to adopt ways for keeping accurate records of everything. Two methods assist you in keeping track of the details of your influencer business.
For New Influencers Who Just Entered The Youtube World
The Bookkeeping methods for influencers are simple. New influencers can handle bookkeeping on an Excel sheet. One can prepare with four tabs – (1) revenue tab; (2) expenses tab; (3) a tab that holds your revenue minus the expenses to define the actual profits. The best part of this method is that it is completely free and easy to use. With Google sheets, you can ensure your bookkeeping is online and one accesses it anytime when needed.
For Established Influencers Who Are Already Running The Youtube World
An established influencer needs a dedicated bookkeeper that helps you better with the various specifics of your Youtuber influencer. A bookkeeper helps you with a clear breakdown of the expenses to make wise decisions in the future. This method allows you to have more time and focus on the revenue-generating activities of your business.
When it comes to running an influencer business, having a dedicated bookkeeper in place helps you better manage your expenses and revenue properly. A professional can save you thousands of dollars in taxes while also ensuring that your business grows. By lowering costs and assisting your Youtube channel is growing, FreeCashFlow can help you get on the road to true profitability.
We assist you with more than simply day-to-day bookkeeping. You may benefit from our experience in scaling your online channel, ensuring that all of your earnings are recorded and that you are making use of all possible tax deductions.