Bookkeeping might not be the most glamorous part of running a photography business, but it’s one of the most important. Keeping your financial records organized and up-to-date ensures that you understand how your business is performing, can make informed decisions, and stay compliant with tax regulations.
In this blog post, we’ll explore why bookkeeping is essential for photographers and recommend some of the best options available—ranging from DIY solutions to professional bookkeeping services.
What Is Bookkeeping and Why Is It Important?
At its core, bookkeeping involves recording all of your business’s financial transactions, including income, expenses, and any other financial activities. Keeping these records is essential for several reasons:
- Understanding Your Financial Health: Bookkeeping gives you a clear picture of how much money is coming in, where it’s going, and how much profit you’re generating.
- Tax Compliance: Accurate records make it easier to file your taxes correctly and ensure you’re not missing out on any potential deductions.
- Cash Flow Management: Knowing what you owe and what you’re owed helps you stay on top of cash flow, so you can avoid liquidity issues.
- Business Growth: When your financials are in order, it’s easier to plan for growth, invest in new equipment, or hire additional staff.
- Peace of Mind: Having organized books means fewer headaches when tax season rolls around and less stress when making big business decisions.
Now that we’ve covered why bookkeeping is so important, let’s dive into some recommended tools and services that can help photographers manage their financials efficiently.
DIY Bookkeeping Solutions for Photographers
If you prefer to handle bookkeeping on your own, there are several software solutions that make it easier to track your finances without needing an accounting degree.
QuickBooks
QuickBooks is one of the most popular bookkeeping solutions for small businesses, and for good reason. It offers an array of features that allow you to track expenses, send invoices, manage receipts, and even track mileage—everything a photographer needs to manage their financials. QuickBooks also integrates with many other business tools, including payment processors and CRM systems.
With both desktop and cloud-based versions, you can choose the plan that best suits your needs, and it’s scalable as your business grows.
In our photo businesses, we use Quickbooks Online as our bookkeeping solution and our accountants are able to access and work with it easily. You’ll find it as one of the top options on lists like this simply because it’s used so widely!
Wave
Wave is a fantastic option for photographers who want a powerful, yet free, bookkeeping solution. Wave offers invoicing, expense tracking, and receipt management, and it’s completely free to use for core bookkeeping functions. The platform also offers add-ons like payroll services and payment processing if you need them.
The simplicity of Wave makes it ideal for photographers who may not have extensive accounting knowledge but want to stay on top of their finances.
We started using Wave with Shoot and Thrive since it offers a simple to use and FREE bookkeeping solution.
FreshBooks
FreshBooks is another cloud-based bookkeeping option that’s particularly user-friendly for service-based businesses like photography. It focuses on making invoicing, expense tracking, and time tracking easy. FreshBooks allows you to automate your recurring invoices, track payments, and generate financial reports. If you need some flexibility with client payments, FreshBooks also integrates well with payment processors.
Xero
Xero is a powerful cloud accounting software that’s well-suited for small businesses, including photographers. It offers features like invoicing, bank reconciliation, expense management, and financial reporting. Xero is known for its ease of use and seamless integration with other business tools, which makes it a great option for photographers who want comprehensive bookkeeping and accounting features in one package.
Professional Bookkeeping Services for Photographers
While DIY options are a great way to get started, sometimes it makes sense to outsource bookkeeping tasks, especially if you’d rather focus more on your craft than on managing the financials. Here are a few professional bookkeeping companies that specialize in working with creative businesses, including photographers.
Tidy Books
Tidy Books is a specialized bookkeeping service that focuses on working with creative entrepreneurs, including photographers. They offer a variety of services, including monthly bookkeeping, tax preparation, and financial reporting. Tidy Books can help ensure that your financials are accurate, your tax filings are on point, and your business is financially healthy. Their team of experts is well-versed in understanding the unique needs of photographers, making them a great choice if you’re looking to outsource your bookkeeping tasks.
Bench
Bench offers an online bookkeeping service where a dedicated team of bookkeepers handles your financial records every month. They categorize expenses, reconcile accounts, and provide detailed financial reports. Bench is perfect for photographers who need someone else to handle the numbers while still having easy access to their financial data online. You’ll also have access to tax services that can help you stay compliant and prepare for tax season stress-free.
Creative Business CPA
Creative Business CPA focuses specifically on businesses in the creative industry. They offer bookkeeping services, tax preparation, and financial planning tailored to photographers and other creatives. Their team understands the unique challenges photographers face, such as fluctuating income and balancing business and personal finances. By working with them, you can ensure your books are kept in order while also receiving advice on how to grow your business financially.
Choosing Between DIY and Outsourcing
The decision to handle bookkeeping yourself or outsource to a professional largely depends on your time, budget, and comfort level with numbers.
- DIY Options: QuickBooks, Wave, and other DIY solutions are great if you’re looking to save money and stay hands-on with your business finances. They are also perfect for smaller photography businesses with straightforward financial needs.
- Outsourcing: If you find bookkeeping to be time-consuming or confusing, outsourcing to a professional service like Tidy Books or Bench can free up your time to focus on your photography and clients. As your business grows, outsourcing bookkeeping can help ensure that your finances are always accurate and up to date. Keep in mind, many accounting firms also can handle bookkeeping for you (as well as handling other financial matters) – be sure to check out our post of recommended accounting firms if you need some there.
Conclusion
Keeping up with your bookkeeping is essential to running a successful photography business. Whether you choose to manage your finances through DIY tools like QuickBooks and Wave, or work with a specialized bookkeeping service like Tidy Books, maintaining accurate financial records will help your business thrive.
Taking the time to set up proper bookkeeping practices will not only save you stress in the long run but also provide clarity on your business’s financial health, helping you make informed decisions to grow.
If you want more tips on running the financial side of your photography business, be sure to check out our Shoot and Thrive business course, where we cover everything from bookkeeping to tax strategies in greater detail.
Chris is a SEO professional with a passion for helping photography businesses succeed online. With years of experience in the industry, he has a proven track record of increasing website traffic, improving search rankings, and driving revenue growth for his clients.
Be the first to comment