Turning your talent for photography into a successful business is a very exciting prospect, but it involves more than simply capturing great-looking photos. To really grow your business and make it last, you need to get a handle on the financial side of things too.
With the UK photography industry estimated to be worth over £1.6 billion pounds, there’s a real opportunity to turn your passion into a profitable business.
If you’re in the early stages of your photography career and wondering how to grow your business. Or if you’ve been doing it for a while and need help taking it to the next level. There are some simple financial steps you can take to help your photography business grow.
And as expert accountants for photographers, we are here to help.
While we might not know much about depth of field or the intricacies of composition, we do know an awful lot about how accounting can turn your passion into a viable business. Here are our best tips on how to grow a photography business and make it a picture-perfect success.
Meticulously track your expenses
When you’re offering a service like photography, the cost of each shoot can vary greatly. It’s not like selling the same product over and over again, where you always know exactly what it costs and how much to sell it for.
Your pricing will change depending on a bunch of different factors, so it’s important to keep track of your expenses to make sure you’re charging the right amount. Travel costs, lighting and equipment, hiring assistants should all play a part in how much you are charging.
Make sure you’re keeping a close eye on these expenses and set up a system to record every cost for each project. This will help you see how much profit you’re actually making from each shoot or photography project.
It’ll also make it easier to give accurate quotes for similar jobs in the future, whether you charge an hourly rate or on a project-by-project basis.
Knowing what each shoot really costs will help you tweak your pricing strategies so you’re not losing money on your work. That way, your business can keep on growing.
Using software like Xero makes a world of difference and saves a lot of headaches down the track. That’s why we use Xero accounting for all our clients. You can upload receipts, sort your expenses into categories, and get detailed reports on your spending.
Use accounting software to manage client payments
Dealing with clients can be tricky, especially when they aren’t forthcoming with payments. While maintaining a good relationship with your clients is important, late payments can disrupt your cash flow and seriously impact your business.
It’s essential to ensure you are always paid on time.
Running out of cash will make it difficult to cover your day-to-day expenses and will not only stunt your business growth but could lead to it failing altogether.
By using accounting software to manage client payments, you ensure you are on top of who has and hasn’t paid. It allows you to easily send professional-looking invoices, set up automatic payment reminders, and even accept payments online.
Our two personal favourites in the accounting software world are Xero and GoCardless, which we use for our clients.
Not only does this make it easier for clients and customers to pay you, but it also reduces the time spent chasing payments, freeing you up to focus on what you do best – getting that perfect shot.
Maximise your tax deductions
Like with any business, photographers have outgoings that impact their bottom line. So, familiarising yourself with all the expenses you can claim back on tax is a must.
Some of the most obvious ones include:
- Photography equipment – expenses for purchasing or maintaining equipment, such as cameras, lenses, lighting, and editing software, are all deductible as capital allowances. Repairs and upgrades to existing equipment also qualify.
- Studio hire – if you rent a studio space for your photography business, the cost of the rental is deductible. This can include short-term hire for specific shoots or long-term rentals for your ongoing business needs.
- Travel expenses – expenses for travelling to shoots or meeting clients, including car mileage, travel costs, accommodation, and meals, are all deductible.
- Training and education – costs for photography workshops, courses, and educational materials to improve your skills are all tax-deductible.
Consulting with an experienced accountant who understands your specific industry can make sure you’re taking full advantage of these deductions.
If you want to find out more then read our blog on deductible business expenses every creative should know about.
Keep track of your equipment
Investing in high-quality equipment is a must for your photography business to thrive. But as you no doubt know, it can be a very significant investment, and like all equipment, it depreciates over time.
Understanding how depreciation works is important for managing your business’s finances.
Each year, your equipment will lose value. Depreciation is basically the way we account for the fact that our equipment isn’t worth as much today as it was when we bought it.
Different types of assets will depreciate in value at different rates, so it’s important to understand exactly how yours depreciates each year.
This can all be worked out by your accountant, of course.
Make sure to keep detailed records of all your equipment purchases, including items such as cameras, lenses, lights, etc. Understanding how your equipment loses value over time helps you plan for future upgrades or replacements. This way, you can make sure you’re always using the best gear possible to keep your photography business going strong.
Continually review your financials and look for growth opportunities
Regularly reviewing your finances helps identify areas where you can cut costs, boost profits, and make smarter investments to grow your business.
Whether you are a one-man-band wedding photographer or a fashion photographer with a legion of assistants, looking for areas to invest will help you grow your photography business.
For instance, when you’re just starting out, you most likely rely heavily on word-of-mouth.
But to expand, you need to reach a wider audience. So, investing in marketing strategies to get your name out there may be something you need to start looking into.
Analyse your spending to see areas where you can save and other areas that may need a bit of a cash injection.
Staying proactive about your financial health is key to keeping your business competitive and moving forward. And this can all be done with the help of a trusted accountant.
Which brings us on to our last point.
Hire a creatively-minded accountant
Navigating the financial side of a photography business can be very time-consuming. That’s why leaving the number crunching to the professionals is always the best choice.
But, when selecting an accountant, it’s important to choose one who is suited to your business. That means finding an accountant who understands the financial side of creative industries, like photography, inside out and out.
At Raedan, we specialise in both accounting and bookkeeping for the creatively minded, having worked exclusively with creatives since our inception. We can use our industry know-how and financial expertise to help you grow.
Now that you have a clearer idea of how to grow a photography business, it’s time to make it happen. If you are a photographer looking to take your business to the next level, then get in touch now.
