Two years ago, we hired a professional organizer for two days while we were on vacation. Prior to starting the work, she walked through our home and helped us identify the top 3 most stressful points that would benefit from a makeover. When we came home from vacation, our pantry, master bedroom closet and garage had been transformed. I can't even describe the level of sanity that just having those 3 areas organized brought to all of our lives.
If your business finances are causing as much stress as our home clutter, I am here to tell you that with a few simple systems and tweaks, you will feel a huge sense of relief walking into the new year.
First, consider hiring a professional to get you organized
I often talk with photographers who feel the need to apologize about their books before I take a look. I assure them that we have "seen it all" and there are very few messes that can scare us away. In fact, if it truly is a bigger mess than we care to untangle, we will start a brand new account and re-create the past instead of trying to clean up the mess.
I have talked to many seasoned photographers who have had an incredible career, only to feel defeated in their finances and overwhelmed by the state of their books after years of a successful career. This is why we are passionate about supporting photographers in this area that is often overlooked or pushed to the backburner.
My advice: hire a trusted, experienced bookkeeper for your photography books. Even if their role is temporary, allowing them to bring organization and systems into your bookkeeping will bring a huge sense of relief. Just like the professional home organizer brought untold calmness to my life, so will well-organized, up-to-date books by a professional.
Second, maintain a sustainable system
We all know how this works: Even though our garage was beautifully organized two years ago, it can quickly look like a tornado swept through it after a busy summer. We have to work on keeping it organized on a daily and weekly basis.
In the same way, once you have a clean system for your bookkeeping, keeping up with your accounting is the hard part.
Ideally, a bookkeeper will keep you accountable to keeping your books up to date on a monthly basis. They will help you to maintain good habits, like keeping business and personal separate, organizing your receipts, and producing a monthly income statement to review.
If you are doing your books yourself, you will want to come up with your own monthly workflow. I recommend making sure your books are up to date by around the 10th of each month. Set aside a morning every other week to catch up on your Quickbooks or make sure your invoicing is current.
Third, look proactively at your finances
Once you have the foundation of tidy and organized books, make sure you are using your numbers to grow your business. Look at your profit and loss each month to see how your business is really doing.
Look ahead and make a plan for the months that may be a little tight. Challenge yourself to a higher profit margin this year than last. It's amazing the freedom that can come when you remove the clutter and confusion in your finances.
