Bookkeeping for your photography business is not something we creatives are always keen on doing, but it's an essential task for our success & growth in business.
As my husband (who is the financial guru in our home) would say: "Most people who don't succeed do not plan to fail, they fail to plan."
Lacking a plan in your business will be the one-way ticket down the road of business failure, leaving you empty handed (and empty-pocketed).
So having a plan set in motion, along with a good bookkeeping strategy, will keep yourself in control & on top of your business endeavors.
1. Keeps your expenses and sales organized
At the end of the year, the last thing you want to do is to gather all those receipts that you so meticulously shoved in a shoebox and have to sort them out.
Not only will this cause major hair-pulling and unnecessary stress, but your account (if you don't have an accountant, what are you waiting for??) will hardly be amused.
Bookkeeping for your photography business will keep your sales, expenses, profits, and estimated tax all perfectly placed so you know exactly where to look for information when the time arises.
Saving you time, even if that means taking the time out of your week to record this valuable information, is worth more than you know!
2. It's a roadmap
Aside from being an organizational tool, a good spreadsheet with your correctly recorded data (key word is "correctly", incorrect or insufficient data will void this point) can be the making or breaking point of your business.
Bookkeeping lets you quickly see where your business is at & helps you decide where you should be going if any change is needed along the way.
Unless you LOVE to be sifting through receipts, data, and bank statements all day to see where your finances stance, then keeping a good book will help guide your business along the way.
3. Helps you see what works and what doesn't
Spinning off from the last point, a good spreadsheet will help you quickly identify what areas of your business seems to be working great and other areas, not so much.
With good recorded data, you can promptly analyze how you should be spending your $$ and time marketing your business, what products to hard sell more, and which months draw in the most revenue from where.
With recording your months and years the same way, it will be easy to review your business & how you can predict a season of growth and anticipate when things might taper off during the year.
his in turn will help you construct more creative ways to market your biz during those slow times, making a spreadsheet your biggest friend and ally!
BONUS TIP: Identifies problems and/or opportunities
Even more than just seeing what is and isn't working in your business, bookkeeping for your photography business can help you identify problems pertaining to tax, finance, spending, etc.
Avoiding disturbances in your financial situation by hiring an accountant to oversee your data is ideal, but having your recorded information stored in one place will be your best bet if you don't have an professional in place
A detailed recording of your spending and making will also come in handy if (heaven forbid) the IRS ever knocks on your door.
By having a copy of your receipts and a structured spreadsheet, this (if it ever comes to be) will be a quick and painless visit.
Need extra help recording your financial data for tax season?
Check out our financial spreadsheets (created just for photographers) to help you get organized and stay on top of your business!
Find success with your money this year by recording your data - you owe that to yourself if you want this year to be a true success!