I’ve talked to a lot of REALLY successful photographers. They started out like all of us. Just a camera and a few clients. But they put in the time and hard work, established themselves and eventually business exploded to an impressive level.
But some things don't get talked about very much. The things that aren't so pretty and glamorous. Below are 7 themes I’ve gathered from successful photographers regarding their finances. These are from photographers who are crazy-successful, making well into the six-figure bracket or on their way to that level. Maybe you can identity with some or all of them.
1. The more I expand and grow, the more overwhelmed and stressed I feel about my finances.
Many photographers feel like they're winging it when it comes to the financial side of things. They tend to be reactive instead of proactive with their money. They've created a standard of expertise and sophistication in their business. But when they open up their books - yikes.
Can you relate? The struggle is real - and yet it's good to recognize that you have a viable, successful business. There's a point when it's time to bring your finances up to the same level of professionalism as your business.
2. I have a CPA, but I’m still not sure if I’m doing things right. I'm not 100% certain that my records are accurate and I worry about what would happen if I were ever to be audited.
A CPA is concerned about filing a business' taxes and won't necessarily keep an eye on the day-to-day of their finances. So it's easy to wonder if you're actually doing things right.
This uncertainty is valid and something worth giving attention to. Accurate records are super important, not just for the sake of staying legit with taxes; you also need these numbers to make confident business decisions.
3. The time and mental energy I spend on bookkeeping tasks could be better spent on growing my business with things like marketing and improving client management.
You've got better things to do than sit with your nose in Quickbooks, right? It takes so much time and energy to keep up with maintaining records - the last thing you want to be doing when you've got some down time. Which is why it usually gets pushed to the backburner.
4. I don’t really know how my business is doing financially until the end of the year.
There's a point at the end of the year when many photographers start scrambling to squeeze in last minute large purchases for the sake of reducing taxes. But what if you could look ahead in February at the year and decide proactively what your year is going to look like? It's hard to make confident decisions when you feel like you're shooting at the hip.
5. I have a basic system in place to track my finances but it’s pieced together. It’s working, but also feels like it could fall apart at any time. I’m trying to keep track of a lot of things and wish everything was all in one place.
I hear this one a lot. Photographers are on the search for SIMPLICITY. There's too much clutter already and numbers in particular are stressful. There's 17hats and Square and Quickbooks and Shootproof...how do I keep it all straight?
6. I’m not sure when, how and how much to pay myself.
Many (probably most) photographers really don't give themselves a paycheck. Photography tends to bring in an inconsistent monthly income, which can present a challenge to a consistent paycheck. It takes a bit of strategic planning to produce a consistent monthly paycheck.
7. I’m keeping track of everything enough to file taxes, but I’m not really sure what numbers I should be looking at for my business. I wish I had a better handle on where my finances are at. I wish I had somebody to walk me through what my numbers mean.
Being a business owner is lonely sometimes. An outside perspective would be nice sometimes, yet no one 'gets' my business like I do. But most photographers wish they had a better handle on the numbers and what they mean. Someone to just make it simple and "tell me what I need to know."
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I’ve had established photographers admit that they actually feel really embarrassed with how little they understand their finances. Feeling like they should have it all together by now.
But here’s what I tell them: it’s actually nothing to be embarrassed about. They are AWESOME at what they do. It’s really just a matter of finding the right people to support them.
If you can relate to these confessions, a bookkeeper might be the next person to add to your team. Not everyone is ready to delegate their bookkeeping, though. Take the business assessment to see if it might be time for you to make the move and hire a bookkeeper.