Beyond the Lens: Essential Financial Literacy for Photographers
The Basic Blueprint for Setting Up Systems for Financial Success as a Self-Employed Creative
Disclaimer: I am not a Certified Public Accountant (CPA), financial advisor, or tax professional. The information provided in this resource is for educational and informational purposes only and should not be considered professional financial or tax advice. You should consult with a qualified accountant or tax professional for guidance specific to your financial situation and business needs.
1. Set Up Your Financial Account Foundation
Separate Personal and Business Finances:
Consider opening a dedicated business checking account with debit card, to keep your photography business income and expenses separate, and make tracking and bookkeeping easier, especially if you will be holding deposits for the future, or paying Contractors (i.e. your second shooters).
Create a Tax Savings Account:
Consider opening a savings account specifically for setting aside tax money (preparing you for federal income taxes, self-employment taxes, and potential local/state taxes). Transfer at least 20-30% of every payment into this account, either immediately or as a lump sum at the end of each month.
*Tip: Currently, online high-yield savings accounts offer around 3.8% API, so you're actually earning money as you save for taxes (versus the negative interest of most traditional banks).
2. Consider Your Client Management (CRM) and Accounting Software
Recommended Tools to streamline workflow and stay organized, essential as you grow busier and get more clients:
Photographer-specific CRMs such as HoneyBook or Studio Ninja offer most things in one place: client invoicing, inquiries/lead capture, contracts, communication, and so much more. *Save on your HoneyBook subscription by using my link: HoneyBooked
*Free: for years I made a custom board using Trello to track inquiries and organize my client workflow.
WaveApp: is a low-fee tool for invoicing (accept credit card and ACH payments), payroll, and expense tracking
Accounting: it's very easy to get lost in doing your business
It's vital to build the skills and mentality of budgeting and financial literacy early on, and utilize an accounting system that work best for YOU, to avoid getting into trouble with taxes or debt. I highly recommend adding The Psychology of Money to your to-do list for investing in yourself and your business, and your long-term financial and mental well-being.
QuickBooks: tracks income, expenses, sales, invoices, mileage, calculates estimated taxes, can generate reports and show trends, and more.
My Photographer Finance Tracker for Google Docs, with quarterly income, expenses, tax and savings calculations, plus yearly projections
3. More Organization: Expenses + Mileage Tracking
Automate: accounting software/apps such as HoneyBook or QuickBooks sync transactions from your business account and can track mileageManual: make simple Google/Excel Sheets, Notes in your phone, or download my Photographer Finance Tracker for Google Docs
Expense Tracking :
Equipment purchases (e.g., cameras, lenses, tripods)
Equipment Repairs (e.g., repairs, calibration, cleaning)
Software subscriptions (e.g., Adobe Lightroom, gallery hosting platforms, accounting software, CRM)
Marketing (e.g., website hosting, social media, ads, print ads or fliers, training, etc.)
Travel (e.g., gas, hotels, food)
Professional services (e.g., legal, accounting, on-going education or mentorship)
Office supplies or home office expenses
Mileage Tracking:
mileage is deductible at the IRS standard rate (e.g., $0.66/mile in 2023)
QuickBooks Self-Employed and other mileage apps offer mileage tracking
What to Track:
Date of trip, starting and ending locations. purpose of trip (e.g., client meeting, wedding shoot), total miles driven.
4. Tax Calculations and Payments
Quarterly Tax Payments:Use IRS Form 1040-ES to calculate and pay estimated taxes. State taxes may also require quarterly payments (check your state’s rules).
Automate Calculations: accounting software such as QuickBooks can estimate taxes based on your income and expenses.
Or find a trusted small-business CPA to help you with filing and additional deductions, like your home office space.
My Photographer Finance Tracker is dividied into quarterly income slots with tax and savings calculations, plus yearly projections5.
Monthly Financial Wellness Routine
Reconcile Transactions: Review and categorize all income and expenses for the month
Transfer Tax Savings: move 25% of your income into your tax savings account
Review Profitability: check if your income covers expenses and aligns with your financial goals
5. End-of-Year Tasks
Review Deductions: Compile receipts and invoices for all deductible expenses.
*Tip: throughout the year, save your digital/email receipts (recurring subscriptions, camera repairs, etc.) into one dedicated email folder for Taxes: then you can hit "print all" - all from one place
Issue 1099 Forms (if required): If you hire second shooters or assistants, issue them a Form 1099-NEC for total payments over $600
File Taxes: Use tax software (e.g., TurboTax Self-Employed) or hire a CPA to ensure accuracy.
More Resources:
You can view my camera gear and recommended accessories, and order The Psychology of Money, here!
The Beyond the Lens Finance Tracker Spreadsheet is here on Etsy
Happy creators spend less time worrying about money and more time creating, yet they also don't ignore this foundational aspect of live and business. I hope this document helps you get started organizing your finances and building a solid organizational structure for your business!
