This is possibly the most important part of the series. In light of recent events, while this is still an OnlyFans specific series, this part can be applied to any platform. Keep reading on how to track your expenses and legally report them to the government, including tips on write-offs, and other ways to excel in your business!
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First and foremost, any income you earn is taxable by law, no matter the country. You WILL need to do your own research according to your country as each has it's own name for things and certain rules to apply. This blog will be as generic as possible so as to not spread seemingly false information to anyone not in Canada.
Track your income.
OnlyFans shows you NET and GROSS amounts which accounts for the fees they take. When tax time comes you will need both amounts. GROSS is your income that is taxable. GROSS minus NET is the total fees taken that can be recorded as a business expense and written off.
This applies to any site you conduct services on, or sell on. Income = taxable. But site fees are a business expense and can be written off.
KEEP THOSE RECIEPTS.
Literally everything can be used as a write off. Save every single receipt and track them. I personally do mine monthly, but if it's easier to do as you go, you can do that or set up your own schedule that works. (psst... my planner has an easy to use income and expenses worksheet!)
In Canada, the common categories for expenses are; advertising, fees, stationary, supplies, shipping, travel, utilities, and wage. There are of course several more, but these are the ones I use the most in regards to my modeling business. Let's take a more detailed look below. Full lists and examples are in my handbook! PS the handbook is totally a write off for your business ;)
You want to market yourself and gain new clients so any money spent on promoting yourself is an expense. Save those email receipts or screenshot messages as needed!
As mentioned above, you'll want to keep track of any fees taken off your income. To track this, make sure your site holds records for 7+ years to refer back to for proof, otherwise screenshot everything and put a folder on a computer or phone.
This one is my favorite because I LOVE being organized and planning!! Anything you need to organize your business can be written off under this category. This section can also be used for training or tools to help boost your business and education.
My second favorite category, and my second highest recorded write off each year is supplies. This is where those physical receipts come in. Consider everything you use on a shoot! What you wear, where you go, etc. Basically.... if it has been on camera with you, or in the room while you shot; you can write it off as an expense. KEEP THOSE RECIEPTS.
Selling prints or bath water? ;) Write off the whole process!! Any note cards you send, envelopes you buy, containers to hold bath water, vacuum seal for worn apparel etc. These are all write offs under the shipping category, besides the obvious shipping fees you pay. Shipping yourself somewhere? I SMELL A WRITE OFF. Travel costs like gas or plane tickets are totally a write off if you're traveling mostly for business.
If you do most of your shooting in-home, you're entitled to write off a portion of your everyday living. Please do your research as per your country. Usually you're allowed an office space deducted from your rent costs, a portion of your electrical, heat, and water bills, as well as internet and cell phone bills. Your cell phone and laptop can also be full or partial write offs depending on personal vs business use.
Lastly, don't forget to pay yourself!! Personally I just pay myself minimum wage as per my province. Track all your hours. Look into an app that works for you, or track it manually.
Tax time as an entrepreneur doesn't have to be scary! Let's do this together! Thanks for following along on this series! If you found it useful or have more questions, drop a comment! I want you to be successful and I'm more than happy to share my knowledge with you all. Get the planner and handbook duo HERE!