Accounting Software is a MUST for Your Photography Business

When you started your photography business, accounting software, finances and bookkeeping were probably not on your mind. But after that first bout with tax time, you knew that you needed something to help with financial management and tax compliance.

But there are additional benefits of business owners having the right accounting software in place for your business.

Cash Flow Management and Increasing profitability

How about improving cash flow? Do you know who owes you? Invoice tracking and online payment services allow you to keep on top of your business finance and contract management. Automated payment reminders increase your time and cash flow.

You want an accounting app that allows you to setup payment terms for your customers as well as giving them online payment processing options.

- Keywords to include: improving cash flow, profitability, automating tasks, invoice tracking, customizable invoice templates, online payment services, financial reports, identify trends, informed decision-making.

No Tax Surprises

Looking at financial reports allows you to identify trends and plan for your taxes with a professional. Making estimated tax payments on your actual profitability means there won't be any surprises come time to file your tax returns.

What features should you look for in accounting software?

Although most accounting software have similar features, and there is one "right" answer, here are the key things to consider. Utilizing cloud-based software sure beats green ledger paper!

Getting Paid

Probably the most important part! Your accounting software should allow you to create professional invoices, track client payments, provide for online payment options (ACH or credit card). Reports showing future cash flow and outstanding invoices are also helpful. Beware some software do not provided unlimited invoices.

Although there are invoicing software, or you can create invoices in Google or Excel, you need it integrated into your accounting software for accuracy and simplicity.

Paying Others

Expense tracking is critical for accurate financial reporting. Whether its for tax compliance or determining the financial health of your business, you need accurate information for expense management for your photography business.

Make sure that you have the ability to track such expenses as equipment purchases, travel costs, and subcontractors.

Profitability Tracking

Putting it all together in an income statement is critical to be able to determine profitability and financial stability. Any good accounting software will have robust reporting options, but make sure you have the ability to pull basic financial statements such as income statements, balance sheets, and cash flow statements, at a minimum. Having these will give you an accurate picture to ensure a successful business.

Managing Your Business

Although you can use a separate CRM to track client details, like project information, it is ideal to be able to combine that information in your accounting software. CRM is an abbreviation for Customer Relationship Management and allows you to track detail information on your client and project management. Most CRM's also allow you to send emails directly from the application to streamline communication.

Plays Nicely With Others

In today's technology environment, it is important that software plays nicely with other software. In other words integration is simple. Whether its CRM systems, other client management tools or payment gateways, you don't want the hassle or potential error of having to track information in separate systems.

Best Accounting Software for Photography

As I said above, there is not "right" accounting software for photography. Unfortunately there is no software specifically designed for photographers. All of these recommendations have trial periods for reduced or no cost. All of them have pretty dashboards and integration with many banks. Payroll is an option in some, while others partner with other software.

Here are four that cover the above requirements.

FreshBooks

FreshBooks is cheap to start, but there are severe limitations on the Lite version. It checks the box as an accounting software option for photographers by providing cloud-based double-entry accounting, invoice creation and payment collection native to the software.

It also allows you to use a mobile app for expense tracking and management. In order to utilize some of its automation capabilities such as payment schedules, you will need to upgrade to a more expensive version. At that price point it is essentially the same cost as QuickBooks. Additionally the ability to track and issue 1099's is lacking.

Recommendation: Start ups with no subcontractor payments.

QuickBooks Online

QuickBooks online from Intuit is the 800 pound gorilla. It is not expensive, and has some nice add-ons from FreshBooks, like the ability to track and issue 1099's to your subcontractors. In order to receive add-ons like time tracking and expense automation, you will need to move up in their pricing tiers. They have a 30-day free trial as well.

Recommendation: You can't go wrong with QuickBooks, even though it might be a more expensive option.

Wave

Wave's claim to fame is that you can use some of its functions for free. Invoicing and basic accounting are free. Adding mobile receipts is an extra cost. Like FreshBooks there is no ability to track and issue 1099's. If you have subcontractor payments you will have to do this manually or select an additional software.

Recommendation: Ideal for start up business or side hustle wanting to keep costs low.

Xero

Xero is another inexpensive option with an initial pricing plan less than QuickBooks, but the pricing plan is limited on the number of quotes and invoices you can send per month as well as the number of bills. It does have a native integration with Hubdoc in it's lowest price plan to capture receipt images.

It also has the ability to track projects, a feature missing in the other software, but that pricing brings it above the basic cost of QuickBooks. Combined your costs could still be cheaper than having a separate CRM software.

Recommendation: Xero is the choice for accurate accounting software as an alterative to QuickBooks.

Other Helpful Features and Software

Although not necessary in your accounting software, these are some of the features you will find helpful.

1099's

Tracking payments to your subcontractors and vendors can be a huge hassle. Anyone you pay more than $600 has to receive a 1099-NEC from you. Being able to track and issue these in your accounting software will save you a ton of headache come tax time.

Mileage Tracking

Travel costs, including mileage tracking, can add up to a significant amount as a tax deduction. There are stand alone free solutions, but again, having all of this in your accounting software simplifies things. In order to tack the deduction for taxes, the IRS requires that you keep total miles, trip details, business purpose, and date. Accurate tracking is a must in case of an audit!

Receipts

Paper is a pain. Tracking expenses and receipt management can easily become a nightmare. Organization is key, and whether your using paper envelopes by month or vendor, or using a digital solution, you will have to be disciplined to keep track of those paper receipts. it should be noted that individual expenses of less than $75 do not require a receipt by the IRS. You will have to provide some other documentation to take the deduction, so a receipt is still the simplest option.

Shoeboxed

This cloud-based platform is specifically designed to help photographers organize their receipts, track expenses, and simplify their overall accounting processes.

One of the key features of Shoeboxed is its receipt scanning and organization capabilities. With this software, photographers can easily capture and digitize their paper receipts by simply taking a photo with their smartphone or uploading an image file. Shoeboxed then automatically extracts the key information from the receipt, such as the vendor, date, and amount, and categorizes it accordingly. This eliminates the need for manual data entry and ensures that all receipts are stored securely in one place.

HoneyBook

This comprehensive platform is specifically designed to meet the unique needs of photographers and creative professionals. With HoneyBook, photographers can streamline their business processes.

One of the standout features of HoneyBook is its ability to manage client communication and project workflows. The platform allows photographers to create customized proposals, contracts, and invoices, all in one place.

Another great aspect of HoneyBook is its integrated payment processing system. Photographers can easily accept credit card payments and track their income within the platform. This eliminates the hassle of dealing with multiple payment systems and keeps all financial information in one secure location.

Studio Ninja

Studio Ninja is more of a CRM, project management, and marketing platform, although it does have some accounting features built into it. You can send quotes and invoices as well as receive payments. It is integrated natively with PayPal and Stripes. It has integrations with Xero and QuickBooks.

Conclusion

In conclusion, investing in the right accounting software for your photography business is crucial for staying organized and maximizing your profits. Bookkeeping and financial reports aren't sexy! But with the top 4 accounting software options for photographers in 2023, you can streamline your bookkeeping, track expenses, and focus on what you do best - capturing stunning moments. Don't let the numbers hold you back; embrace the power of technology and watch your photography business soar!

Top 4 Accounting Software For Photographers For 2023