Optimize your Sales Funnel for Affiliate Marketing for Accounting and Tax with airSlate SignNow

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if you are an affiliate marketer or any online business owner in this video i'm going to tell you everything you need to know about taxes bookkeeping and accounting and we are starting right now welcome back my name is nabil and first of all uh let's see why you should take me seriously i have been an accountant for more than 20 years and i have a county office called kra accounting services and i have been affiliate marketer since 2017 i have a website or affiliate business called kra marketing so in short i know what i'm talking about just as a full disclaimer i am in canada and i know canadian tax laws but i don't think there is much difference when it comes to u.s europe australia and many other countries the only difference i can see is the tax rates but if there is something wrong in your country or the laws are different in your country than what i'm saying in this video please just tell me in the comments so i know and audience will know so i'm in canada and i'm talking about canadian law but there is no much difference between canada us and europe and let's get started since i am an affiliate marketer i spend a lot of time online just looking for ideas uh for my blog posts or videos and seeing what people ask about affiliate marketing or any online business so uh by the way the tax laws doesn't matter if you are affiliate marketer or any form of online business owner they are all the same they are all businesses and they fall under the same tax laws since i am an affiliate marketer i spend a lot of time on the internet and searching for ideas from my blog post or searching for ideas from my videos and i see the questions that people ask when they start an online business and one of the questions i see all the time is when i start affiliate marketing or when i start an online business do i have to incorporate a company do i have to register a company the answer to that the short answer is it doesn't matter it is really up to you it depends on what you want uh you can go you can incorporate a company and have a corporation or you can go as a self-employed self-employed that means you don't have a company but when you file your taxes everything your business income and your personal income goes under one tax there is advantage and disadvantages for both let's start with self-employment the advantage is there is less paperwork when you are filing your taxes uh it's only one tax that you need to file at the end of the year which is your personal tax you just include a form for business income and business expenses in your personal tax uh the disadvantage for that when it comes to liability the liability comes after your personal assets even if you are doing this as a business when it comes to incorporation that means uh that means you have a separate financial entity that your personal assets uh the advantage to that is when it comes to liability it comes the liability comes after your corporation's asset only but it doesn't come after your personal assets so uh now if you ask me which is better uh to incorporate the company or just to go as a self-employed uh the answer to that is in my opinion if you are making somewhere around 70 or 80 000 or more you better incorporate a company because you'll not guarantee that there will not be a liability that comes after your personal assets but if you are making less than that it doesn't really matter um it is your choice uh i advise if you are doing less than 70 000 or 80 000 a year to go as a self-employed because that's as i said it is less paperwork less complicated and you submit only one tax at the end of the year um and when you have a corporation that means you have more responsibilities more paperwork and more complicated than just submitting one tax now let's see how tax work and how you can reduce your taxes the way tax work is you have your income and you have your expenses so income minus expenses that is your net income and that's what you'll be taxed on for example you have you made 100 000 this year and your expenses is thirty thousand that means the bottom line is seventy thousand you'll be taxed on seventy thousand whatever the percentage of taxes is in your country uh in canada is somewhere between 20 to 22 percent uh everything combined so to reduce your taxes there are two ways one to reduce your income and i don't think anybody any one of us as affiliate marketers or online business owners want to do that we don't want to reduce our income we want as as as a we want our income to be as high as possible so now you have to increase your expenses when it comes to income there is no trick to that and it is straightforward everything you made within that year that becomes your income when it comes to expenses anything that you spend for a business to run your business that's your expenses for example you paid somebody to make a website for you or your website hosting and your if you have an office your rent and all expenses in that office uh if you run facebook ads or google ads all the expenses that you uh that you spend on those us that's your expenses your bank fees and you paid somebody to do something for you and you have office supplies you bought papers for printer you bought a laptop so anything that you bought to run your business is a business expense and when it comes this is of course for a corporation when it comes to self-employed again everything you pay to run your business that's a business expense and there are some less obvious ones for example you are doing your affiliate marketing or online business at home that means you are taking room from your house to run a business that becomes a percentage of your rent or your mortgage that becomes business expense uh let's say for example 25 your your repair maintenance 25 of that uh 25 of your farm bill 25 of your of your utilities so just imagine it imagine it like that you have a house and you in your house you live in your house and you do business so the parts that you do business any expense that related to that part is your business expense as i said for me i take 25 but it depends on you how many percent you use it for example um when it comes to your car uh car payment and gas and car maintenance oil change and everything you can take 25 because it is expected that you go here and there using your car to run your business so there is the uh when it comes to expenses there is an obvious one and there is the less obvious one uh so that's it as i said taxes is your income and minus minus all your expenses that's a net income so that's how you'll be taxed that's the number that you'll be taxed on uh again these are canadian laws and as i said there is no difference between canadian loan and and other countries law when it comes to taxes except the percentage and if i said something that doesn't match your country please tell me in the comments that's all i have to say about taxes when it comes to online business or affiliate marketing if you have any question just tell me in the comments let me know and if i provide any value just like this video and subscribe to the channel and good luck until next time bye you