Bookkeeping and Accounting for Podcasters

As a podcaster, there are numerous specific expenses that may qualify you for a tax deduction. However, always consult with a tax professional or a bookkeeper to ensure you're correctly navigating the regulations. Here are some potential deductions:

• Equipment Costs: Expenses related to recording equipment such as microphones, headphones, mixers, and computers can be claimed.
• Software & Subscriptions: Editing software, hosting platforms, and related subscription services can also be deducted.
• Marketing and advertising: All the money you spend promoting your podcast is deductible.
• Home Office: If you use part of your home exclusively for podcasting, you may be able to claim a home office deduction.
• Travel Expenses: If you travel for your podcast - be it for interviews, events, or other podcast-related activities, you can claim travel costs including airfare, accommodation, and meals.
• Education and Training: Any courses or training you take to improve your podcasting skills can be deducted.

Please remember not all expenses can be claimed - they must be considered an 'ordinary and necessary' cost in your line of work. Thus, consulting with a bookkeeper can be beneficial to optimize your tax deductions.

Tracking your earnings from podcast sponsorships and advertising can be efficiently done by using an accounting software. However, if you are using a manual system, make sure to record every transaction promptly. Include all important details like date, amount, sponsor's name, and type of sponsorship or advertisement. Additionally, clarify which podcasts the earnings are related to, if you host more than one. Keep your invoices and proof of transaction for verification. It's also a good idea to use separate business accounts for the finances related to your podcast to simplify tracking and auditing. More importantly, you might want to consider availing the services of a bookkeeper who specializes in handling finances for podcasts. They can help ensure that your records are accurate and updated, freeing up more time for you to focus on creating content.

The kind of bookkeeping system you should adopt to organize your podcasting revenue streams like subscriptions, donations, and affiliate marketing would depend upon several factors including the volume of transactions, the complexities involved, and your personal preferences. However, a cloud-based software like Bench is typically a suitable option for most podcasters. These software systems allow you to categorize income and track expenses conveniently.

If your podcasting operations are more extensive and your existing revenue streams also include more complex avenues like sponsorships and ad revenues, a comprehensive bookkeeping system specialized in media and entertainment industries might be more appropriate. Software like Sage Intacct or Netsuite can provide advanced features that cater specifically to your diverse needs.

Remember, it's crucial you consult with a professional bookkeeper or an accountant who understands your business to implement an appropriate system for you.

Nope! All bookkeeping is completed in-house.

Your bookkeeper will be your main point of contact, but at times you might hear from another member of your team. This is usually when your bookkeeper goes on vacation, is sick, or otherwise unavailable.

We handle the bookkeeping for you but sometimes we’ll need your input, especially at year-end. On average, expect to spend 15 minutes each month answering questions for your bookkeeper, or uploading supporting docs.