Photography Accounting: A Necessary Evil

Accounting Spreadsheets - Necessary

Hobbyist and aspiring photographers all struggle with accounting. Either with tracking the actual ledger or with fudging the numbers or just resenting the fact that they have to pay so much in taxes.

I really encourage you do some research about your state taxes, you might even be pleasantly surprised.

A quick example that I discovered with Florida taxes is the services don’t have state taxes. That can really be an advantage when done properly. Just make sure you keep track all your income & expenses.

THE IMPORTANCE OF PROPER ACCOUNTING IN PHOTOGRAPHY

Accounting is the systematic recording, reporting, and analysis of financial transaction of a business. Many business owners tends to over-look the importance of accounting, the trend is mostly noticed among professional photographers who tends to forgo the importance of proper accounting in their respective business.

Still doubting the importance of accounting in your photography business? Before we get into it, make sure you’re read up some accounting terms.

Here are few important reasons you should definitely consider proper accounting in your business:

  • Your accounting records provide you with an accurate detail of your expenses versus income. Many photographers underestimate the importance of knowing how total money realistically is required to run their business. It’s quite effortless to understand your fixed costs (equipment and lighting) but your variable costs can rise up quickly. A proper accounting record can make it easier for you to understand the financial details of your business and also helps you to keep track of expenses or expenditures and income.
  • As a photographer, a good invoicing tool should be your best mate, because losing track of invoices and payments could lead to huge financial losses for your business. So it is best advised you have an invoicing tool which would help you in keeping an up to date record of all your invoices and payments.You can accept credit card payments from clients on the spot. A great invoicing tool should automatically feature a “pay now” button directly on the invoice, making it easier to get paid faster. There are even great apps, like PocketSuite.
  • An accurate accounting record is the only way to track your financial successes and revisit your financial failures. This is an important procedure to make your photography business grow, because you need to have the knowledge of what works successfully so you can repeat it in future business ventures and build on your success. On the other hand, you need to know the mistakes you made which lead to failures you encountered so you can correct them and avoid making same mistakes again.
  • A good accounting software provider can help you pay taxes, loan payments and expenses on time. This shows financial responsibility in your business. Creating a financial calendar will remind you of due dates for your bills and payments. When You will be able to understand and interpret the details of your professionally organized and accurate financial records.

By now am quite sure you know the importance of accounting to your photography business and why you need it? But how can you get started?

This few tips would go a long way in helping you start up a proper accounting record for you photography business:

MAINTAINING A LEDGER. This is the simplest and the oldest method of account keeping for business dating decades back. The general ledger is a great tool for keeping a summary of all your accounts and the financial activities that took place involving those accounts throughout the year.

KEEPING JOURNALS. General ledger is a great account keeping tool but while recording a larger number of transactions each year, the record would become bulky and difficult to use. In its stead most people use a series of journals that detail activity in their most active accounts. A good example of a journal is cash receipts journal in which most companies keep the details of all incoming cash and a cash disbursements journal in which to keep the details for all outgoing cash.

COMPUTERIZING. This is fast becoming the standard method of account recording in most businesses across the world, with the daily advancement of technology, venturing into computer based account recording system for your photography business would be a great idea. Before you venture into computerizing of your account records, these are few platforms you will need to know about before choosing one:

Using an online accounting service. An online (cloud-based) accounting application have all the benefits of desktop software and it also enables you to work anywhere you want, depending if you have an available internet connection. Other great advantage of cloud base accounting services is the bonus of not needing any software download and no annual prompt for upgrade fees. Your information is also safely secured online in case of any damage to your computer or office. Most online accounting service is easily programmed in an Excel like workbook for an easy learning curve and usage.

Accounting Spreadsheet for Photographers. This is the best accounting service option available to photographers. Using photography accounting spreadsheets is easier when recording accounts for your photography business because of their well simplified and organized features which you will learn in no time. Almost all photography spreadsheet went through a multi-level process between photographers, lawyers and CPAs to get their outstanding looks and features.

Basic Accounting Spreadsheet for Photographers come with the following features:

  • Expense Tab
  • Income Tab
  • Miles Tab
  • Convient Dashboard
  • Fully editable excel file
  • All formulas preset to calculate for you
  • Keeps track of taxes easily
  • Categories pre-loaded to keep track of receipts and deductions.

Complete Accounting Spreadsheet for Photographers come with the following features:

  • Client Data
  • Inquiry Data
  • Receipts Tracker
  • Clients Product Amount
  • Expense Tab
  • Income Tab
  • Miles Tab
  • Convient Dashboard
  • Monthly Income
  • Cash flow
  • Income Tax
  • Fully editable excel file
  • All formulas preset to calculate for you
  • Keeps track of taxes easily
  • Categories pre-loaded to keep track of receipts and deductions.

There are numerous accounting spreadsheets for photographers in the market, choose a good one which offer the unique features outlined above to get started with.

Naturally, it be great if you took advantage of our Simplified Accounting Spreadsheets but honestly we really just want you to succeed. So, if you elected to make your own spreadsheets or go with an online system like FreshBooks, no hard feelings. 🙂

It is advised you start proper accounting for your photography business to secure your business and save you the headache of losing track records of your expenses and income so as not to put your business in a financial mess.

Start today and have a better business foundation. What’s another good method or trick that you use with your photography accounting?

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JoN McClure

Started FEATUREDphotog with his wife for one reason: To help the aspiring photographer get their first feature! Plus, site has resources, articles, products, and even a podcast devoted to the aspiring photographer that is beginning and wants a long term pursuits of becoming a professional photographer. Subscribe today and contact us to see if we can help in any way.