Starting a photography business is not easy, but if you’re a creative soul like me, worrying about your finances makes kickstarting your business so much harder! Here are 3 things you should do that are finance related to photography when you’re making those first steps of being a legit business!
Open a business bank account
It’s so important to have two separate accounts for your business and personal finances! In order to become a Sole Proprietor or LLC, you’ll need a separate account for your funds, but having a business bank account also helps you keep your business expenses and profits easily trackable for tax season!
Put money aside
Here is a general breakdown of how you can split up your income! You don’t need to follow this to a T, but it’s a great guide for getting started!
20% of your income should be put into savings
20% of everything you make should be put away for savings, or to be reinvested in your business! Buying new gear, presets, subscriptions, can all be taken from this 20%
30% of your income should be put away for taxes
Depending on your state, you may need to put more or less money aside for taxes, but 25% may be a solid middle ground! Anytime you get paid, make sure you put 25% into a separate account and keep it there until it’s time to pay your taxes! No one likes owing more money at the end of the year.
50% of your income can be paid to yourself
The 50% left over can be transferred to your personal bank account for you to spend on your personal expenses! Rent, groceries, that cute new outfit, etc!
Use a legit payment processor
It’s so common for newer photographers to use Cashapp or Venmo as a payment method! Make your business more professional by using Stripe, Paypal, or through your CRM (such as Honeybook.) Using a more professional payment processor may be a bit more expensive with transaction fees, but the money is more likely to get to you. If a client tries to file a chargeback, it’s a bit more difficult with legit services. Plus, transaction fees can be a business write off for your taxes!
Check out Basecamp for even more finance tips!
Running a photography business is hard, but if you join my online learning platform, Basecamp, it makes your life so much easier! Not only are there more videos on photography finances, but also marketing, editing, BTS sessions with me, and soooo many guest speakers!