Photograghers Accounting system
Nov 10, 2013 07:35:41 #
My daughter is doing well as a photographer an is going to launch her offical business in January. Are any of you aware of web sites that give ideas and/or help in the set up an accounting system. I knew all about this stuff and income tax 40 years ago but sure need help now.
Nov 10, 2013 07:58:53 #
ottopj
Loc: Annapolis, MD USA
It may be time for her to spend a few $$ and talk to an accountant. Possibly someone at a local university/college. It will be a business deduction.
Nov 10, 2013 08:00:40 #
RacerDan wrote:
My daughter is doing well as a photographer and is going to launch her official business in January. Are any of you aware of web sites that give ideas and/or help in the set up an accounting system. I knew all about this stuff and income tax 40 years ago but sure need help now.
Intuit has a lot to offer in that area - Quickbooks, Quicken Home and Business.
One thing I know from people in business is that they like as much detail in all their entries and transactions as possible.
Nov 10, 2013 08:05:20 #
Years ago, my son worked as an independent contractor, for his accounting he used a program called Quickbooks. It's not cheap, but he seemed happy with it.
Beyond that, I would suggest she have a chat with a registered accountant in the area where she lives (or will do business).
A registered accountant should know all the local laws as well as State and Federal laws regarding sales tax, annual statements and reports, deadlines for filing, where to send stuff, etc. He/she will also be able to tell her what paperwork to keep, and even a good way of filing it. An accountant may also have some ideas about available software.
I know, not much help from me here, but four years ago my son and daughter-in-law set up their hobby farm as a business and that is exactly what they did. When they realized what was involved, they actually now throw all the paperwork pertaining to the farm in a box, and take that to the accountant - he loves it, 'cause he now also gets paid to sort it all out ;-)
Wish you daughter success with her new business!
EstherP
Beyond that, I would suggest she have a chat with a registered accountant in the area where she lives (or will do business).
A registered accountant should know all the local laws as well as State and Federal laws regarding sales tax, annual statements and reports, deadlines for filing, where to send stuff, etc. He/she will also be able to tell her what paperwork to keep, and even a good way of filing it. An accountant may also have some ideas about available software.
I know, not much help from me here, but four years ago my son and daughter-in-law set up their hobby farm as a business and that is exactly what they did. When they realized what was involved, they actually now throw all the paperwork pertaining to the farm in a box, and take that to the accountant - he loves it, 'cause he now also gets paid to sort it all out ;-)
Wish you daughter success with her new business!
EstherP
Nov 10, 2013 08:40:44 #
Having owned a business for 30 years, I would first suggest she talk to an accountant. They can save you tons of grief in the long run. However, like any business, you need to find a good one. Most accountants us Peachtree for their data base. I was on Quickbooks and it made it a little difficult, but not impossible to work with, with regards to the accountant.
Also, find out the difference between an LLC and a S-Corporation. Not just the money difference! When I went to the S-Corp, it was the best thing I ever did. May not be for her, but that is why I suggest she talk to a recommended accountant in her home town. I wish her much success!
Also, find out the difference between an LLC and a S-Corporation. Not just the money difference! When I went to the S-Corp, it was the best thing I ever did. May not be for her, but that is why I suggest she talk to a recommended accountant in her home town. I wish her much success!
Nov 11, 2013 07:33:53 #
I am a small business owner with an MBA in marketing and finance. My advice for someone with no accounting experience is to hire an accountant or join a photographic trade association to start the business. Accountants turn me off because the ones I have met make things so complicated.
The key to setting up the accounting is the chart of accounts. That must be done correctly. Then, all transactions must be entered into the right accounts. Unless one is really interested in these details, leave it to a professional. Finally, all those tax filings can be rather taxing on one's patience and sanity.
My advice is to work with a professional or trade association to minimize your involvement with the accounting and maximize your effort in marketing the business. However, do not fall behind in the accounting. You are probably a better photographer than accountant or bookkeeper so that is where to spend your time.
The key to setting up the accounting is the chart of accounts. That must be done correctly. Then, all transactions must be entered into the right accounts. Unless one is really interested in these details, leave it to a professional. Finally, all those tax filings can be rather taxing on one's patience and sanity.
My advice is to work with a professional or trade association to minimize your involvement with the accounting and maximize your effort in marketing the business. However, do not fall behind in the accounting. You are probably a better photographer than accountant or bookkeeper so that is where to spend your time.
Nov 11, 2013 09:43:09 #
Sheila
Loc: Arizona or New York
Some accountants do much of their work with small, single proprieter businesses. They handle hair salons, small stores and restaurants.
As a retired accounting and financial person, some of accounting can seem complicated at first but it is important that you get a system to easily track income and expenses if for no other reason than the taxing authorities can make your life miserable.
Do you know anyone who runs a small business? Ask who they use.
As a retired accounting and financial person, some of accounting can seem complicated at first but it is important that you get a system to easily track income and expenses if for no other reason than the taxing authorities can make your life miserable.
Do you know anyone who runs a small business? Ask who they use.
Nov 11, 2013 10:41:32 #
Sheila wrote:
Some accountants do much of their work with small, single proprieter businesses. They handle hair salons, small stores and restaurants.
As a retired accounting and financial person, some of accounting can seem complicated at first but it is important that you get a system to easily track income and expenses if for no other reason than the taxing authorities can make your life miserable.
Do you know anyone who runs a small business? Ask who they use.
As a retired accounting and financial person, some of accounting can seem complicated at first but it is important that you get a system to easily track income and expenses if for no other reason than the taxing authorities can make your life miserable.
Do you know anyone who runs a small business? Ask who they use.
In all due respect, you have to deal with the balance sheet side of things too. In this situation, the fixed assets and long-term liabilities may not be significant but the amateurs screw up in mistaking income/expenses with assets/liabilities. A good professional will also deal with cash flow and viability issues. Marketing and production are the real challenges, not the accounting.
Nov 11, 2013 10:51:27 #
Sheila
Loc: Arizona or New York
abc1234 wrote:
In all due respect, you have to deal with the balance sheet side of things too. In this situation, the fixed assets and long-term liabilities may not be significant but the amateurs screw up in mistaking income/expenses with assets/liabilities. A good professional will also deal with cash flow and viability issues. Marketing and production are the real challenges, not the accounting.
Good grief. I also have an MBA with a specialty in accounting and finance and am a former corporate controller but we are trying to help a novice who doesn't need to have everything thrown at them in one bite. This is why an appointment with someone specializing in small business accounting would be a good step. A CPA who specializes is this area would be able to guide the person step by step through this process. A competent person would explain all of this in simplified terms and give the photographer some guidelines. They don't want to become an accountant, they want have a professional photography business. Sometimes too much information is overwhelming and stops someone from doing what is in their best interest.
Nov 11, 2013 11:05:37 #
Talk to an accountant. I did, and followed their recommendations. Long story short, I use Quickbooks for almost 100% of my bookkeeping.
Nov 11, 2013 11:19:18 #
Nov 11, 2013 11:21:36 #
Sheila wrote:
...we are trying to help a novice who doesn't need to have everything thrown at them in one bite. This is why an appointment with someone specializing in small business accounting would be a good step....
And that is why she should start with an accountant to do it right. She will be busy enough with marketing and production. Now is not the time to become an accountant too. However, at some point, she will have to learn how to read financials and reconciling cash accounts.
Nov 11, 2013 11:24:58 #
Beware of QuickBooks or any accounting program. Certainly are easy to enter data and write checks but doing it all correctly is another story. If you do not know some accounting, then hurry to an accountant. If his answers are more than three minutes or you do not understand them, find someone else.
Nov 11, 2013 11:29:17 #
abc1234 wrote:
Beware of QuickBooks or any accounting program. Certainly are easy to enter data and write checks but doing it all correctly is another story. If you do not know some accounting, then hurry to an accountant. If his answers are more than three minutes or you do not understand them, find someone else.
That why she needs to meet with an accountant, they should help her set up her quickbooks to get the information that they require for her business.
Nov 11, 2013 12:35:07 #
I suggested the same thing in an earlier post. Find a CPA you can be comfortable with and can handle your needs. However, on the Quickbooks program, most of the CPA's I know use Peachtree or a variation of that. Find out what the accountant would like for her to use that they both will feel comfortable with.
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