Whether you are just starting with your photography business or you have full-time, it is a good idea to treat your business as a legitimate one. This means you should advertise and market your services in order for your business to reach a wide audience and help you reach your business goals.
One important thing in running your photography business is keeping track of your finances. Although it is not as exciting as doing photoshoots or editing pictures, bookkeeping is just as important.
Bookkeeping for the photography business doesn’t have to be difficult. Here are some do’s and don’ts tips for you so you can approach your bookkeeping with confidence.
- Have a basic understanding of bookkeeping.
Even if you assigned someone to do it for you, you should have at least know how to track your expenses as well as your income.
- Keep your receipts or at least back it up
Receipts always get lost or crumpled. Sometimes it fades and becomes useless. Spend a few minutes uploading copies of receipts to your preferred online storage.
Use an accounting program that works best in your line of business. This will make the process easier and faster.
- Ask for advice
When it comes to accounting, some things are too complex to handle especially if you have no accounting background. Ask someone if to help you if there is something you can’t figure out.
- Hire someone that is familiar with your industry
Keeping track of finances, especially taxes, can be complicated. Hiring someone may be costly, but it’s always better to know that it is done correctly than do it yourself and struggle with mistakes. Click here to find someone who can help you with the bookkeeping job and more.
- Don’t mix personal and business assets
Operating your business using your personal bank account is not a good idea. You should open another account and use it for your business transaction alone.
- Do not use money allocated for taxes/payroll to other uses
The money you hold intended for mortgage, taxes or payroll should not be touched and used for other purposes.
- Do not delay everything
Keeping track of your business’s finances should be done in real-time for you to make a smart decision. Make sure you update your bookkeeping record at least two times a week and do not wait for the deadline for you to get started.
Why do you need bookkeeping?
With bookkeeping, you will be able to know where your money is going. You’ll also know if your business is making a profit or not. This will help you in making financial decisions in order to keep your photography business running smoothly.
If you are doing your books, you will be able to produce reports that will help you have a better understanding of how your business is going and if your profit is enough to cover your expenses. If you encounter some issues, at least you can plan ahead for the future.
The reports can also help you, especially if you are planning to get a business loan or look for investors. You can easily share the financial reports and have them decide whether your business is something they are willing to take a risk on.
And if you have employees in your photography business, you can share the reports as well so that they will be updated on how the business is doing so far. It’s best if they know if the business is good enough to keep them employed at least for the next few months.
If you are not up for doing the bookkeeping task yourself, you can always hire a helping hand. Either you hire an accountant that you can include in your payroll or hire a third party like a bookkeeping service from a trusted company that can help you look after your photography business accounts.
Bookkeeping is crucial for any business. Not only you will be able to keep track of the money you are making and spending, but it also helps you in your decision making. It is a vital tool that gives your business a reliable measure of your performance and enables you to manage your photography business in a much better way.