Tax and Accounting Tips for Photographers

Accounting software for photographers provides easy-to-use tools for creating professional invoices and accepting payments. These features enable photographers to send customized invoices to clients, automatically track payments, and simplify their cash flow management. Additionally, a mobile app can help manage invoices, client documents and payments on the go, ensuring prompt and efficient billing. Quickbooks is the top accounting software on the market, regardless of your industry, and for good reason.

So, the accrual method is trying to pair the expense of renting the venue with the income you made by renting the venue in the same time period. You’ve got a high-end digital camera and a top-notch printer topped off with quality ink and toner. Janet Berry-Johnson, CPA, is a freelance writer with over a decade of experience working on both the tax and audit sides of an accounting firm.

Accounting made simple

It’s also accessible via your desktop, online, and your smartphone, making it easy to track your business activity on the go. Though relatively new on the scene, Honeybook has already become the go-to project management system for creatives, but it can also be great accounting software for photographers. With Honeybook, you can create custom financial reports from your client data, track your profits and expenses, and determine your customer conversion rate. This software also integrates smoothly with Quickbooks to make accounting that much easier, especially at tax time. Tracking your expenses and balancing your books can seem like a daunting challenge, especially if you’re busy chasing down gigs and working hard to improve your photography skills. Though it may seem tedious and dry, bookkeeping is an important aspect of maintaining a sustainable photography business, tracking your invoices, payments, mileage, expenses, and more all in one place.

I’ve included some options for outsourcing in this article as well–namely Quickbooks Live and Bench (learn more below). If you’re really struggling for an answer, it’s well worth paying an accountant for an hour or two of advice. The upfront cost might sting, but it won’t hurt nearly as much as a penalty for filing an incorrect return. Paper receipts are horrible things – always getting lost, crumpled beyond recognition and fading to uselessness. Iris’ basic plan starts at $25/month, and the advanced plan is just a few dollars more, at $29.95/month. Save 15% when you sign up annually, and enjoy a 30-day free trial to determine if it’s the right fit for your business.

Download Apps

You’ll want something that offers double-entry accounting, and, ideally, a full ecosystem of accounting support (versus a cloud provider that only deals with invoicing or payroll, for example). There are some fantastic free providers out there that specialize in software for zero to nine employees, perfect for when you’re just getting started. Here’s what you need to know about accounting to run your photography business. Shoeboxed’s expense tracking system keeps track of all of the photographer’s receipts and automatically classifies them making filing taxes a much simpler process. Their mileage tracker keeps track of miles driven from one shoot location to the next.

But once you invest this time upfront and get everything in place, it makes everything else go so much smoother down the road. There’s bound to be another freelancer who’s solved the same problem before. I’m lucky enough to work with some really talented bookkeepers and there are some things I’ve picked up on along the way that have helped me with my own freelance bookkeeping. Spend more time capturing the right image and less time balancing your books. We provide different levels of support for customers who use different features and services from Wave. Use a website builder to build one in 10 easy steps and show off your impressive work.

A typical bookkeeper will charge in the range of $35 to $65 per hour. On the other hand, if you hire a CPA to do the same work, the fees will probably be AT LEAST at $100 per hour and most likely even higher. An accountant can also figure out your potential tax liability throughout the year. You can certainly try to do this on your own, but it may end up costing you more in the long run, especially if you are disorganized. «I get stressed and procrastinate when it’s time to do my books. I’m done with DIY accounting.»

Get started with Xero here

Instead of merely taking cognizance of when cash literally swaps hands, this method connects revenue with the activity that created it basically. If you structure your business as an S-Corp, you will file an 1120-S tax return. A Schedule-K will be prepared along with this return, reporting your income or loss. The figures on the Schedule-K will then be used to report your profit or loss on your personal tax return. In California, for example, photographers are required to pay sales tax on the entire photography package if any physical product is delivered (not just on the physical product itself).

Reporting also helps you when you’re looking for any kind of business loan. You can easily share your photography business’s financial standings with investors or creditors. Bookkeeping is a great way to understand your cash flow at any given time.

How to get started

With us by your side, you’ll turn your business into the source to fuel the life you design. With so many built-in features, Wave is a strong contender when it comes to free accounting software for photographers. When your money management is streamlined, you get to spend more time creating and less time calculating. If you’re ready to boost your financial wellness, begin with your bookkeeping.

We wanted to make these processes easier for entrepreneurs, so we developed software built specifically for them that speaks their language. Small business owners need to free themselves from all the difficulties of running their business they aren’t prepared for. They go into business because they are really good at being a photographer, designer, consultant or whatever — not because they want to do things like accounting or payroll. Overall, selecting the most compatible and accurate accounting software is a crucial step for photographers looking to achieve a sustainable and successful business.

Backed by over 15 years of experience in Jacksonville, Florida, and beyond, Golden Apple Agency is your trusted partner in Accounting for photographers. The information you give your accountant will be entered into accounting software and categorized accordingly. At the end of the year, they can give you a print out of all income and expenses for the year and should be able to help you plan a budget for the next year. But obviously, the more transactions you have, the longer it will take them to do their work.

“Know how often you need to file taxes and what is deductible.” In the United States, photographers can get most of these questions answered through their state’s Department of Revenue website. Tanya recommends QuickBooks for photographers who want a tried-and-true software to lean on, but any bookkeeping solution can work if you maintain it. Just be sure you’re regularly updating your number and reconciling your accounts.

• To avoid following this dangerous trend, it’s best to start your photography business slowly.
• The idea is to pay off your expenses (and keep them to a minimum in the first place), so the expenses don’t turn into liabilities.
• If your photography business doesn’t have many transactions, outsourcing to a CPA firm or independent bookkeeper is probably a better and cheaper option.
• In this system, you record incoming and outgoing cash when it actually happens, or when payments are made.

The software should be user-friendly and intuitive, enabling you to efficiently manage your finances, track expenses, and generate financial reports without the help of an accountant. Furthermore, a responsive and knowledgeable customer support team can make a significant difference, especially if you encounter technical issues or need assistance with specific features. Sprout Studio is the best accounting software with a photography-specific CRM that offers invoicing, client management, and scheduling tools. It helps photographers stay organized and efficiently manage their business. Accounting software for photographers, like FreshBooks and ShootQ, offers industry-specific features such as invoicing, expense tracking, and online payment solutions.

That said, there are only two options and I do believe most photographers would want the higher tier. However, pricing for the higher tier is comparable to the other software providers on this list. CRMs (which stands for Customer Relationship Management systems) are an important tool for a photography business, or any other business for that matter.

To ethically conduct any business, you must know and follow the basic accounting principles. For instance, exploiting the effective and right software, tax application, and tracking of expenses. Properly managing the finances of your photography business is essential for improving cash flow and profitability. Accounting software can automate tasks such as tracking outstanding invoices, sending late payment reminders, and assessing late payment fees. In addition, many platforms offer customizable invoice templates, as well as integration with online payment services like Stripe, allowing your clients to make payments quickly and easily.

Set aside some time each day or week to put down the lens and stay on top of your finances. By doing a bit of maintenance every day or every week, you will know your business more deeply and end-of-the-year tax time will be a breeze. Now you know why you need accounting, how an accounting software provider can paint the picture of your finances, and some of the common terms you’ll come across. Credits are great for increasing income and decreasing expenses, but not so great when they increase liabilities and decrease assets. Like debits, there are pros and cons to credits, depending on where you move your money.