This year I went in search of the perfect planner to organize my life. I sorted through lots of websites and read lots of reviews. In the end I went with the one that I could customize for exactly what my family needed. And I now I have a planner that I love.
Just like there's not one perfect planner for a busy mom, as a photographer there's not a one-size-fits all software solution for your business. For some photographers, Quickbooks might be overkill. For others, it's going to really automate things and make life easier.
This is the first of a series of articles that will walk you through the different categories of software options. I'll also give you reasons you might want to go with each option.
Why most photographers hate Quickbooks
Many photographers I know who have tried Quickbooks have hated it. I hear words like “it was way too complicated, and had too much stuff that I didn’t need.” I think this is probably because Quickbooks uses an accounting system called double entry bookkeeping.
I won't go into what that is, but let's just say if you've ever used a checkbook, then you're used to single entry bookkeeping. So a program like Quickbooks might feel way too complicated and you’ll want to poke out your eyeballs trying to learn it.
I will say that Quickbooks has worked hard (especially in the last couple of years) to be accessible to the average business owner and make it FEEL like a single-entry system. So don’t be afraid to give it a try - just know that it looks at numbers differently than you’re used to and it will be a bit of a learning curve. (And on the off-chance that you want to learn more about why you would use double-entry over single-entry, check out this article. )
When to use Quickbooks:
Not every photographer needs it. If you’re part-time or just starting out, it's probably unnecessary. Here are 3 big reasons you SHOULD consider using it:
1) If you currently bring in over $100-150k or plan to scale your business to that level. I see a lot of photographers who have built an impressive business, but the level of professionalism in their accounting is extremely lacking. Quickbooks (if used correctly), is going to bring your finances up to the same level of sophistication as your business.
The comprehensive reporting, invoicing and tracking features will be everything you need to keep accurate records and have a good picture of the health of your business. Another great feature is the budgeting portion to make sure you are planning ahead and staying on track with profit goals.
2) If you eventually plan to hire out your bookkeeping to free up your time and mental energy. Quickbooks is the standard software that bookkeepers and accountants use, so you’ll already have it in place when it's time to delegate. A professional will use the program's full functionality and you'll be able to strategize about your business by looking at any number of reports. You might be a couple of years away from delegating your bookkeeping, but you'll have things in place for a smooth transition when the time comes.
3) If you really want to automate and streamline your accounting system. With Quickbooks, you'll securely connect your bank account so that your bank transactions are automatically imported. Quickbooks will start to auto-recognize and remember past transactions for easier categorizing. You can also sync with other softwares like 17hats or Dubsado so that your invoices and payments are automatically recorded in Quickbooks. And, my favorite, you can manage your receipts so that they automatically get attached to the transaction in Quickbooks.
Note: Xero and Wave (which is free) are competitors to Quickbooks - both double entry accounting.
The reason I would recommend Quickbooks over these for photographers is that most client or studio management programs out there (like 17hats, Honeybook, Dubsado) integrate REALLY well with Quickbooks, but do not currently work with these other programs.
Also, most tax professionals use Quickbooks for their preparation, so you will be in great shape if you hire someone to file your taxes.
Find out more reasons why we love to recommend Quickbooks to photographers here.
In part 2 of 5 we'll take a look at user-friendly alternatives to Quickbooks. These are single-entry accounting programs, so the learning curve is much less steep.
Tanya had her own photography business for 6 years and discovered she liked the business side of things almost as much as photography. Long story short, now she's a bookkeeper FOR photographers. Find other accounting resources for photographers here.