The Importance of Accounting in Photography
Many photographers start their business because are good at photography, and enjoy taking photos in their personal lives. They have the creative abilities needed to succeed as a professional photographer. What they often do not have are the “business tools”, especially when it comes to accounting.
Photography is fun, but paying bills and tracking money is usually not as fun to a photographer. As an accountant I have that strange enjoyment for numbers. It is just as important for a business owner to take care of the “business side” as it is to perform the photography functions. Keeping track of the accounting is not just keeping track of how much money clients pay (income). It is very important to keep track of expenses as well since those offset money received by clients to calculate the actual business earnings. Also, it is important to track expenses because some are tax deductible. Examples of expenses to track include household utilities if the business is in a home, mileage and car maintenance if there is a vehicle for the business, advertising expenses, equipment costs, etc. By keeping current with the tracking of the accounting, for their business, it is not as daunting or overwhelming.
When you wait until it is tax time to get all of your figures together it is one huge overwhelming project, and much more work than keeping track of everything as it comes along, and is fresh in your mind! The use of an accounting tool, such as The PhotoAccountant Solution spreadsheet, will help a photographer with little or no accounting knowledge maintain the records needed to make tax-time a breeze. It can help you look at the financial condition of the company at any time, as well as track jobs, clients, and other business vital items. The best thing a photographer can do it start out maintaining good records, and building that part of the business into the normal routine just as you would editing photos. Make it part of your normal business, find a great accounting tool to help take a lot of the technical accounting out of the process, and come year-end you will receive a huge payout for your efforts, hopefully in the form of a headache-free experience filing your taxes.
This guest post was written by Andrea Spencer, “The Accountant” in The PhotoAccountant Solution.
*** In the comment section, please share any accounting tips you have related to your photography business.