Bookkeeping and Accounting for Video Editors

Bookkeeping for video editors adapts to include the vital aspect of software purchases and subscriptions. These are considered as essential business expenses. Software purchases are typically recorded as assets and capitalized, meaning they're spread across the lifespan of the product. Subscriptions, on the other hand, are generally considered as expenses and are deducted in the fiscal year they occur.

At the end of each accounting period, the bookkeeper may also need to account for the depreciation of purchased software. This is the process of spreading out the cost of the asset over its useful life, thus matching the expense of the software to the income it helps to generate.

Both methods are used to ensure an accurate representation of the company's financial health and to comply with local and international accounting standards.

Yes, video editing equipment can be counted as either an expense or a depreciating asset, depending on the circumstances. If it is a smaller piece of equipment or its useful life is less than a year, it may be considered an immediate expense. However, if it's a significant piece of equipment with a lifespan of more than a year, it can be set up as a depreciating asset. This way, the cost will be spread out over the estimated useful life of the equipment. Always consult with your bookkeeper or accountant to make the best decision for your business's specific situation.

Revenues from different sources such as freelance projects, YouTube revenue, and royalties from your videos should each be accounted for separately in your books. This helps ensure accuracy and clarity in understanding your income streams.

Freelance project revenues are typically accounted for as business income once the project is completed and the client has paid. These can be categorized as 'service revenue' or 'project income'.

YouTube revenue, which might include ad revenue, channel memberships, super chat, and YouTube Premium revenue, can be registered under a separate income category named 'YouTube Revenue' or 'Digital Ad Revenue'.

Royalties from videos can be accounted for as 'royalty income' once they're received. Remember, it is essential to account for any taxes or fees deducted at source before you receive these payments.

Keeping separate accounts for each income source can simplify things during tax season and help you understand your revenue streams better. However, it's always a good idea to consult with a professional accountant or bookkeeper to ensure you're recording everything accurately.

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.