How do you find the right accountant for your business? Today, we’re diving into this crucial topic. They can make a significant impact on your financial and tax management. Over the past decade, Kate, the founder of Simple Pin Media, has experienced both the peaks and valleys of dealing with taxes, accumulating countless stories along the way. However, one constant that has made a significant difference is having an excellent CPA. Her CPA is fantastic—trustworthy, knowledgeable, and always looking out for her best interests. However, not everyone is so fortunate.

Many creators and small business owners struggle with CPAs who don’t understand their unique needs, especially when it comes to deductions and the nuances of their income streams. Kate has heard nightmare stories of CPAs who think creators are earning money illegally simply because they don’t understand the business model. Often, these poor experiences stem from using a family member’s accountant or the neighbor down the street—choices made out of convenience rather than suitability.

Related: Business Tips When It’s Hard

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Today’s episode is sponsored by Cookie Finance. You’ll hear more about Cookie Finance below. At SPM we choose sponsors because we believe they have great tools for our audience. Accounting and tax services are essential for small businesses and choosing the right one can mean you sleep better at night and know that once you hit tax season you’re confident all the i’s are dotted and the t’s are crossed. Thank you to Cookie Finance for sponsoring this episode.

Discovering Cookie Finance

Kate recently attended the Tastemaker Conference in Chicago, where she had the pleasure of meeting Nate from Cookie Finance. Nate’s passion for helping creators and small businesses get the tax deductions they deserve was immediately evident. He shared numerous stories of creators who had struggled with traditional CPAs and how his company aims to bridge that gap. Seeing the potential benefits for our audience, we invited Nate to join us for an episode of the podcast to share his story and expertise when it comes to finding the right accountant for business.

Why Choosing the Right CPA Matters

Accounting and tax services are non-negotiable for small businesses. Choosing the right CPA can provide peace of mind, ensuring that when tax season arrives, everything is in order. Cookie Finance could be the solution for many of you creators who have been using the wrong accountant.

Now, let’s get into Kate’s conversation with Nate from Cookie Finance.

Accountants for Content Creators + Influencers

Kate: Nate, welcome to the Simple Pin Podcast!

Nate: Thanks, Kate. I appreciate you having me on.

Kate: I’m really excited to dive into this! As I mentioned to our listeners, accounting and tax services can feel overwhelming, especially for creators. Many don’t give much thought to taxes or accounting until they’re in the thick of it. Often, they rely on recommendations from friends or family, which doesn’t always work out. Can you share how you saw this issue and started your business?

Nate: Absolutely. I’ve been a CPA my entire career, working for one of the largest accounting firms. However, I noticed a significant gap in the market when my sister-in-laws, both content creators, shared their struggles with me. They were getting terrible advice from their local accountants who didn’t understand the unique aspects of their business. When I looked online, I saw the same misinformation being spread. That’s when I decided to start a company focused specifically on creators, ensuring they get the accurate, specialized advice they need.

Common Mistakes and Misconceptions

Kate: What are some of the biggest mistakes or misconceptions you see creators dealing with?

Nate: One major misconception is around deductions. Traditional accountants often reject valid deductions because they don’t understand the business. For instance, I had a client making $300,000 from affiliate marketing but her accountant only allowed $5,000 in deductions. After reviewing her expenses, we amended her return and got her a significant tax refund. Creators need to understand that their business expenses are legitimate and can include things like clothing, travel, and other costs tied directly to their content creation. They have to spend that money in order to build their business and grow their audience. Any money a creator needs to spend in order to do those things is a cost of their business.

It is a unique profession because they might need to spend money on a vacation, on clothing, or experiences. There are so many different kind of deductions in the world of content creation that most accountants don’t understand, therefore costing their clients more money in taxes.

Kate: Do you think the tax code is behind the times for the creator economy?

Nate: Absolutely. The last major overhaul of the tax code was in 1986. Since then, the world has changed drastically, especially with the rise of the internet and social media. The tax code hasn’t caught up, which is why many accountants struggle to apply it to modern businesses. They try to fit new business models into an old framework, which doesn’t work well.

Finding the Right CPA

Kate: For a content creator looking to hire a CPA, what are the non-negotiables they should look for?

Nate: First, ensure the CPA understands and is comfortable with the deductions you’re entitled to. Second, they should communicate effectively and be available when you need them, especially during tax season. Lastly, they should be proactive in finding ways to save you money, not just reacting to what you bring them.

Tax Mistakes

Kate: What is a common mistake you see a lot of content creators making?

Nate: A common mistake I see is people not treating their business like a real business. Often, they might claim to run a business, but their actions suggest otherwise. For example, they may not have an LLC set up, lack a separate bank account, or fail to track their income and expenses. This hobby-like approach leads to significant issues, such as being unaware of their financial inflows and outflows, and not understanding the key drivers of their success. Successful creators meticulously track their revenue, expenses, and platform analytics to ensure their growth aligns with their financial goals.

During tax season, disorganized creators face chaos when compiling financial information for their CPA. This results in missed deductions, overpayments in taxes, and penalties for not making estimated payments.

Overcoming the Cost Barrier

Kate: Many believe hiring a CPA is expensive. How can you address this concern?

Nate: If you’re making under $40,000-$50,000 a year, you might not need a full-time accountant. However, once you start making more from your content creation, a dedicated CPA becomes invaluable. At a higher income level, a good accountant should save you more money than they cost. Our goal at Cookie Finance is for our services to be a net positive for our clients, not an expense. An effective accountant will help you find deductions you might miss on your own, ensure your legal structure is properly set up, and implement other tax-saving strategies. By maximizing your tax savings, the cost of an accountant should be minimal compared to the financial benefits they provide.

In addition to the biggest mistake of not treating their business like a business, another common error I see among clients is not outsourcing their work. Many creators feel they need to handle everything themselves, believing no one can match their level of expertise. However, outsourcing lower-level tasks allows them to focus on their highest and best use.

For example, a recent client spent countless hours trying to understand various tax forms and deductions by calling the IRS and researching online. This time could have been better spent on more productive activities. If an accountant can save you 20 hours of work a year, and you use that time to secure an additional brand deal worth $5,000 to $10,000, the return on investment is clear.

Kate: I couldn’t agree more. When you’ve built your business from the ground up and handled everything yourself, like that woman who was calling the IRS to figure things out, you become accustomed to being scrappy and finding the cheapest solutions. However, as your business grows and you want to continue that growth, outsourcing becomes essential.

Taking the first step to hire someone can be transformative. For instance, when a client hires a virtual assistant (VA) to handle 20 hours of work, it frees them up and often sparks newfound creativity. Suddenly, they have the bandwidth to explore new ideas and opportunities they hadn’t considered before. This freedom to innovate and expand is invaluable. Although the initial decision to hire can be daunting, it’s crucial to recognize its long-term benefits. Overcoming the fear of outsourcing opens up many possibilities and allows you to focus on what you do best, driving further success and growth.

Conclusion

Kate: Nate, thank you for sharing your insights.

Nate: Thank you so much for having me!

Kate: For our listeners, if you have any questions about taxes or accounting, don’t ignore this crucial aspect of your business. Get a plan in place, and consider reaching out to a specialized CPA like Nate at Cookie Finance.

More Pinterest Marketing Resources:

Watch: Product Sellers on YouTube – Top 3 Most Important Tips

Shop: How To Market Your Products on Pinterest

Cookie Finance: Accounting For Content Creators & Influencers

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