Bookkeeping Essentials for Photographers
When you’re super creative, sometimes grounding yourself to complete menial tasks like bookkeeping for your small business can be a real pain in the neck. Unfortunately, the IRS doesn’t care that you’d rather be out shooting at golden hour than tracking your expenses.
Although QuickBooks Online can be your BFFFL here, there’s a lot that goes into doing your own bookkeeping. That’s why I created this list of Bookkeeping Essentials for Photographers to get you headed in the right direction!
Separate Business and Personal Accounts
When implementing this list of bookkeeping essentials for photographers, it’s crucial that you open a business account to keep your business transactions separated from personal ones. With all you have to do already, sorting through accounts trying to find expenses that have fallen through the cracks can seriously set you back timewise.
Track Expenses and Income
Make sure you keep a record of all the money you’re spending and making. As a photographer, manually entering these things can be very low on your list of important things to do, so QuickBooks Online is key to streamlining this process.
Monitor Cash Flow
Your cash flow is the amount of money that flows in and out of your business, so I don’t need to tell you that it’s very important to keep an eye on it regularly. This will give you a good idea of who’s paying you on time, who’s late, and how much money you actually have to use towards your business.
Review Financial Statements
Financial statements (like your balance sheet or income statement) give you a snapshot of your business’ financial health and wellness. Reviewing these statements routinely will help you understand your business’ financial situation and also give you an idea if you need to cut some expenses or where you can improve your profits.
Save Your Receipts
Although this might not seem like it’d be high on my list of bookkeeping essentials for photographers, saving your receipts can provide you with serious security if you’re to be audited.
Receipts are proof of the expenses you’ve put into your business. QuickBooks Online offers ways to record and organize your receipts so they’re all neatly tucked into one place.
As a photographer balancing so many different tasks at any given time, organizing your receipts can be an arduous task. Between purchasing or renting camera equipment, to general expenses while you’re out on the road going from shoot to shoot, saving those receipts is important to prove those expenses' validity to the IRS if need be.
Invoice Clients ASAP
It’s imperative to do this as soon as humanly possible to ensure that you are paid promptly for your services. You’ve got so much on your plate already with editing, traveling, client out-reach, and just being a small business owner that things like this can get lost in the sauce.
But ultimately this is how you’re getting paid for your small business, and you cannot afford to miss even one invoice! Software like QuickBooks Online can keep all your invoices recorded, and show you any outstanding debts you are owed, and if clients are paying you in a timely manner.
Create Budget
Creating *and sticking to* a budget will most likely be one of your most important tools to growing and maintaining your business, and is important to this list of bookkeeping essentials for photographers. This will help you meet your financial goals, keep up with bookkeeping tasks, and give you a good idea of how to structure your business.
Especially during the slow months, when people are hibernating rather than getting married and having babies that you can photograph, this will be indispensable. These months may be financially difficult if you have no other revenue streams coming in, so creating a budget that allows for these slower times will help you manage your income and spending appropriately.
Make a Calendar of Deadlines
Being a photographer and running your own small business is tough, and unfortunately, it is not at all easy maintaining a schedule for yourself and your family let alone your daily operations, photoshoots, and editing deadlines.
Keeping on top of those things themselves can be a full-time job, but again, the IRS doesn’t care how much work you’ve got to get done. If you miss a tax deadline, you’re bound to incur unnecessary penalties and fees. Keeping a detailed calendar of your bookkeeping duties can save you from all that, and take some stress off your shoulders at the same time!
Conclusion
I know that was a lot of information to digest in one sitting, but I can assure you this list of bookkeeping essentials for photographers is going to help you gain security and create transparency as to where your small business is financially, and where it’s headed.
I know your job title is head photographer and small business owner, and bookkeeper does not belong anywhere in your defined roles, so if you have questions about bookkeeping or QuickBooks Online, don’t hesitate to reach out to me!
