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Riches in Niches: Influencing influencers

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Summary

In this article, Juliette Gaudemer looks at the specialty accounting firm Cookie Finance and its founder Nate Coughran. Coughran created the firm to assist influencers with their financial needs. His clients have 23 million followers and subscribers combined, and Coughran helps them set up LLCs, reconcile their bank accounts, file taxes on time, and separate their private and professional lives. He also educates influencers on taxes and provides recommendations to help them succeed. Coughran believes that more boutique firms like Cookie Finance will emerge and that older generations are underestimating the influencers' market, which is worth billions of dollars.

Q&As

What motivated Nate Coughran to create the financial services firm Cookie Finance?
Nate Coughran was motivated to create the financial services firm Cookie Finance after seeing that many accountants weren't equipped to assist social media influencers with their businesses, and some even took advantage of their lack of financial knowledge to provide low-quality services.

Why do social media influencers struggle to find quality financial advice?
Social media influencers struggle to find quality financial advice because older-generation CPAs rarely have a great understanding of social media outlets like TikTok, YouTube, Instagram and OnlyFans, and other accountants often have difficulty reconciling influencers' bank accounts every month and filling their taxes on time.

What challenges does Nate Coughran face when working with influencers?
Nate Coughran faces the challenge of getting his clients' attention, as they are often busy growing their platform and working long hours, and some influencers struggle to separate their private lives from their professional lives.

What advice does Coughran give influencers for managing their finances?
Coughran advises influencers to set up an LLC, use separate bank accounts and credit cards, and remain conservative when it comes to tax deductions.

What is the potential for boutique accounting firms specializing in social media influencers?
The potential for boutique accounting firms specializing in social media influencers is high, as the market for influencers is estimated to be worth billions of dollars.

AI Comments

👍 This is a great article that provides insight into the world of accounting and influencers. It is interesting to read about the various ways CPA's are helping influencers succeed and how Cookie Finance is striving to assist them.

👎 This article does not provide enough detail about the various ways CPA's are helping influencers and could have been written in more depth. Additionally, the article does not provide enough information about how influencers can avoid taking advantage of the developing industry.

AI Discussion

Me: It's about an accountant who specializes in financial services for social media influencers. He noticed that many accountants weren't able to provide quality services to influencers, so he decided to create his own firm, Cookie Finance, to help them. He also talks about how there's a lack of understanding of social media outlets and financial knowledge among older-generation CPAs, and how his clients have to deal with the challenge of separating their personal and professional lives.

Friend: Wow, that's really interesting. It seems like there's a real need for accountants who specialize in this field and it's something that more and more people are getting involved in.

Me: Yeah, it's definitely an area that's growing and it looks like this could be a great opportunity for accountants. There's a lot of potential for accountants to help influencers understand their finances and make sure they're following the rules and regulations. It could be a really lucrative niche for accountants, as well as a chance to help people manage their finances better.

Action items

Research the different social media platforms used by influencers and familiarize yourself with the different types of content they produce.
Learn more about the financial needs of influencers and how to provide them with the best services.
Reach out to influencers and offer your accounting services to help them with their businesses.

Technical terms

Social Media Influencers: People who have a large following on social media platforms and use their influence to promote products or services.
Microsoft Excel: A spreadsheet program developed by Microsoft that is used to store, organize, and analyze data.
CPA: Certified Public Accountant. A professional designation given to individuals who have passed a series of exams and met other requirements set by the state in which they practice.
LLC: Limited Liability Company. A type of business structure that provides limited liability protection to its owners.
S corp: A type of corporation that is taxed as a pass-through entity, meaning that the income and losses of the business are passed through to the owners and reported on their individual tax returns.
TikTok: A social media platform that allows users to create and share short videos.
YouTube: A video-sharing platform owned by Google.
Instagram: A social media platform owned by Facebook that allows users to share photos and videos.
OnlyFans: A subscription-based social media platform that allows users to monetize their content.
Finfluencers: Influencers who provide financial advice or services.
LLC: Limited Liability Company. A type of business structure that provides limited liability protection to its owners.
S corp: A type of corporation that is taxed as a pass-through entity, meaning that the income and losses of the business are passed through to the owners and reported on their individual tax returns.
Tax Deductions: A reduction in taxable income that is allowed by the government to reduce the amount of taxes owed.
Fauxfluencers: People who disguise themselves as influencers in order to take advantage of tax deductions.