What Are The Best Bookkeeping Tools For Creatives?

 What Creative wants to think about bookkeeping? Ok, we get it, conjures images of green eye shades. But you don’t want to skip this important business process. Read on to learn more.

What Is Bookkeeping?

Bookkeeping is important for businesses in the creative industry to manage their finances. Accurate and organized financial records are necessary for informed business decisions and tax purposes. Bookkeeping involves tracking and documenting all business transactions, including sales, expenses, invoices, and receipts.

By maintaining detailed records, creative professionals can understand their business's financial health and make informed decisions. Bookkeeping software like QuickBooks Online can streamline the process and allow creative business owners to focus on their artistic pursuits. 

What Does A Creative Need To Know About Bookkeeping?

When it comes to running a creative business, bookkeeping may not be the most exciting aspect, but it is crucial for your financial success. As a creative, there are a few key points you need to know about bookkeeping to ensure that your business stays on track.

First and foremost, it is essential to separate your personal and business finances. Opening a separate bank account for your business transactions will help you keep track of your income and expenses accurately. This separation will make things easier for you when it comes to tax season, provide a clear picture of your business's financial health, and save hassle in the event of an IRS audit.

Categorizing and tracking all your income and expenses is another critical aspect of bookkeeping. By categorizing your transactions, you can easily identify where your money is coming from and where it's going. Proper tracking also helps you keep compliant with 1099 form compliance.

Types of Bookkeeping Tools

When it comes to bookkeeping, there are various tools available to help streamline the process and ensure accuracy. These tools are designed to assist creative professionals in managing their business finances effectively.

From digital bookkeeping software to DIY bookkeeping routes, there is an option to suit every individual's needs and preferences. Let's explore some of the different types of bookkeeping tools available and how they can benefit creative business owners.

Manual/Paper-Based Bookkeeping

Manual or paper-based bookkeeping is one method of keeping financial records for creatives. Although it may seem outdated in today's digital age, it can still be a viable option for those who prefer a hands-on approach or have limited access to technology.

Establish a filing system for organizing receipts, invoices, and other important documents, such as W-9 forms. You can use a simple ledger to record all business transactions, categorizing expenses and income, reconciling bank statements, and generating financial reports.

Despite its simplicity, manual bookkeeping has both benefits and drawbacks. On the positive side, it offers a tangible and physical record of financial transactions. It can also be cost-effective, as it eliminates the need for specialized software or hiring external bookkeeping services. Additionally, manual bookkeeping allows creatives to have a deeper understanding of their business finances.

However, manual bookkeeping can be time-consuming and prone to errors. It requires meticulous attention to detail and can result in late nights spent organizing receipts and records. To maintain accurate records, creatives should establish a consistent record-keeping routine, regularly review their financial information, and seek professional advice if needed.

Overall, while manual bookkeeping may not be the most efficient method, it can be a suitable choice for creatives who prefer a more hands-on and tangible approach to managing their business finances.

Software-Based Bookkeeping

Software-Based Bookkeeping: Simplify and Streamline Your Financial Tasks

For creatives, balancing the demands of running a business with the need for accurate bookkeeping can be a challenge. That's where software-based bookkeeping comes in, offering a range of benefits and features specifically tailored to the needs of creative professionals.

Here are some of the best software bookkeeping tools for creatives:

1. QuickBooks Self-Employed:

QuickBooks Self-Employed is a popular choice for freelancers and independent creatives. This tool allows you to track your income and expenses, separate personal and business expenses, and generate reports for tax purposes. It also integrates with various payment platforms and offers a mobile app for on-the-go bookkeeping.

2. FreshBooks:

FreshBooks is another excellent bookkeeping tool for creatives. It offers features such as invoicing, expense tracking, time tracking, and project management. FreshBooks is known for its user-friendly interface and intuitive design, making it easy for creatives to manage their finances effectively.

3. Wave:

Wave is a free bookkeeping tool that caters to small businesses and freelancers. It provides features like invoicing, expense tracking, and receipt scanning. Wave also offers optional paid services, such as payroll and credit card processing, making it a comprehensive solution for creatives with growing businesses.

4. Xero:

Xero is a cloud-based accounting software that offers a range of features suitable for creatives. It allows you to track expenses, create and send invoices, and reconcile bank transactions. Xero also integrates with various third-party apps, such as project management tools and payment gateways, to streamline your bookkeeping process.

5. Zoho Books:

Zoho Books is a user-friendly bookkeeping tool that offers features like invoicing, expense tracking, and bank reconciliation. It also provides comprehensive reporting and analytics to help you gain insights into your business finances. Zoho Books integrates with other Zoho applications, making it a convenient choice for creatives already using their productivity suite.

Virtual Services for Small Businesses

If you aren't interested in doing your own bookkeeping, you can hire someone to do it.  You can hire someone from Upwork or there are other companies that specialize in bookkeeping services.  Although not necessarily virtual, you can also engage a local company to do your bookkeeping work.

Core is Virtual accounting firm that specializes in Creative Industries.  Whether you're an influencer, videographer, photographer, or marketing company, Core has the experience to be your financial guide.

Conclusion

In conclusion, finding the best bookkeeping tools for creatives is not only essential for managing your finances, but it can also unleash your creative potential. By streamlining your bookkeeping processes, you can spend less time on paperwork and more time on what truly matters: creating. So, embrace these tools, take control of your finances, and let your creativity soar to new heights!