In recent years, the esports scene has emerged from a small niche to a form of entertainment enjoyed by millions of fans throughout the world. Viewership of competitive gaming is expected to continue to grow, which is good news if you're one of the top players in this industry. In-game purchases, media rights, tickets for live events, merchandise, sponsors, and advertising help fuel the esports industry with billions of dollars each year. If you're a pro gamer who has been on a Dota 2 esports team that has won some tournaments, it's likely you've made a nice chunk of money. Devoting thousands of hours of practice and dedication allows you to compete in the top tournaments, which can be lucrative every time you reach your goal of beating the competition. Taking in a large amount of prize money also means you'll need to record the income and expenses associated with playing video games at such a high level.
Streamlining Your Bookkeeping
Playing video games can be exciting and fun. However, if you're doing this at the professional level, you should treat it as a business. Your dedication and enthusiasm will require you to keep an accurate record of your portion of the sponsorship money that's given to you for the role you play in helping your team win a Dota 2 tournament. Any expenses you make towards this endeavor should also be included in your bookkeeping ledger. The money spent on computer hardware for practicing or plane tickets for traveling to tournaments should get recorded accurately. It may be more efficient if you choose to utilize an esports athlete accountant. A good accountant will have the experience and knowledge to address any expenses related to being a professional esports athlete.
Having a Solid Tax Planning Strategy as a Professional Gamer
Whether you're receiving income from sponsorships or ticket sales, the IRS requires you to pay taxes on your income, which usually requires having a comprehensive tax planning strategy in place. Understanding if you can deduct the food you purchase while you're at a tournament or depreciate your gaming computers may help you save money. You should analyze your expenses and income to calculate a reasonable estimate of the tax liabilities you'll need to pay. We usually recommend getting assistance from an expert with these tasks as well. An esports athlete accountant may help safeguard you from making any costly errors and save you the most money when you pay your tax bill. They may help make your tax planning more straightforward so you can focus on winning games.
Best Practices: Making Significant Financial Decisions
Reaching the level of a professional gamer has probably taken thousands of hours of dedicated practice. Achieving this goal and making a large sum of money may require you to make some significant financial decisions. Utilizing the expertise of a seasoned financial adviser should help ensure you receive the financial advice you may need to get paid what you're worth. We are here to help generate comprehensive financial reports and assist with your decision-making when you need to negotiate. We take your gaming journey seriously and understand that you may need support. Teaming up with a CPA and CFO should help ensure your efforts pay off as best as possible. You can learn more about our services by clicking the button below to schedule a complimentary discovery call today!
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