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Bookkeeping & Accounting For Photographers + Spreadsheet

accounting for business

As a photographer, you know that accounting and bookkeeping are important aspects of your business. But, do you know how to properly keep track of your finances? This article will teach you the basics of accounting and bookkeeping for photographers, as well as provide a basic spreadsheet template to help you get started.

 

What Are Accounting and Bookkeeping Processes and Why are They Important for Photographers?

Accounting and bookkeeping are the processes of recording, classifying, and summarizing financial transactions to provide useful information for business decisions. This information is then used in financial statements and tax returns. Keeping accurate records of your business finances is important for two main reasons:

  1. It helps you track the financial health of your business: Are you making a profit or loss? How much money do you have coming in and going out?
  2. It ensures that you comply with tax laws and regulations; if you don’t keep accurate records, you may end up owing the government money come tax time.

 

The Basics of Accounting – What You Need to Know to Keep Your Business Finances in Order

There are three main financial statements that every business should maintain: the balance sheet, the income statement, and the cash flow statement.

  1. The balance sheet shows a snapshot of the assets, liabilities, and equity of your business at a specific point in time.
  2. The income statement shows the revenue and expenses of your business over a period of time.
  3. The cash flow statement shows the inflow and outflow of cash for your business over a period of time.

 

In order to prepare these financial statements, you will need to track three things:

  1. Assets – anything that has value and can be used to generate income (e.g., equipment, inventory, accounts receivable)
  2. Liabilities – anything that has a value, but cannot be used to generate income (e.g., loans, accounts payable)
  3. Equity – the difference between your assets and liabilities (i.e., what is left after you pay off your liabilities)

 

Bookkeeping Practices for Photographers – How to Track Expenses, Clients, and Invoice Payments

As a photographer, you will have many different types of expenses, such as equipment, supplies, travel, advertising, and office space. It is important to track all of these expenses so that you can see where your money is going and make informed decisions about how to spend it. There are two main ways to track expenses:

  1. Use accounting software – there are many different accounting software programs available, both online and offline. Choose the one that best suits your needs and budget.
  2. Use a spreadsheet – if you don’t want to use accounting software, or if you prefer a more hands-on approach, you can use a spreadsheet to track your expenses. There are many different templates available online, or you can create your own.

In addition to tracking your expenses, you will also need to keep track of your clients and invoice payments. This information is important for two main reasons:

  1. It helps you keep track of who owes you money and when they need to pay it
  2. It helps you track the financial health of your business: Are you making a profit or loss? How much money do you have coming in and going out?

There are three main ways to track clients and invoice payments:

  1. Use accounting software – as mentioned, many different accounting software programs are available. Choose the one that best suits your needs and budget.
  2. Use a spreadsheet – you can use a spreadsheet to track this information manually, or you can use a template that is available online.
  3. Use an invoicing service – there are many different invoicing services available, both online and offline. Choose the one that best suits your needs and budget.

 

Spreadsheet Example

Below is a basic spreadsheet example that you can use to track your expenses, clients, and invoice payments. This spreadsheet includes three tabs: Expenses, Clients, and Payments. You can customize this spreadsheet to fit your own needs, or you can use it as a template to create your own spreadsheet.

Expenses Tab

The Expenses tab includes a list of all of your business expenses. It is important to track all of your expenses so that you can see where your money is going and make informed decisions about how to spend it.

Clients Tab

The Clients tab includes a list of all of your clients. It is important to track this information so that you can keep track of who owes you money and when they need to pay it.

Payments Tab

The Payments tab includes a list of all of your invoice payments. It is important to track this information so that you can track the financial health of your business: Are you making a profit or loss? How much money do you have coming in and going out?

 

Conclusion

As a photographer, it is important to track your expenses so that you can see where your money is going and make informed decisions about how to spend it. You can use accounting software, a spreadsheet, or an invoicing service to track your expenses. It is also important to track your clients and invoice payments so that you can keep track of who owes you money and when they need to pay it. Use the spreadsheet example provided or create your own spreadsheet to fit your needs.