Client Spotlight: How Jackie made 2020 her best year

I asked my client Jackie Zoeller of Denver Headshot Company and Selah Photography to tell us about 2020 and how she pushed through obstacles to make this her best year yet. I hope you’re as inspired by her as I am.

What did you do in 2020 to push your business forward? 

I didn't give up! I tried to find every opportunity to be adaptable and worked to make the most out of any idea that came together.

 I've also worked harder at relying on experts instead of myself for everything within my business. I know photography, not marketing, finance, or business development. Instead of slowly trying to figure things out for myself, I took leaps and hired great people to lead me and come alongside my company.  It often came at an initial loss but the value of the risk ended up multiplying once things were in place. 

I also am constantly choosing to not let fear make my decisions. I've learned a lot about my weaknesses and negative thought patterns and have chosen to move forward despite being afraid. 

What were the results? 

Outside of the stay-at-home order, my revenue is on track to be up by about 400-500% each month compared to last year. In October of 2020, I brought in about half of my yearly gross revenue from 2019 in one month.

How would you encourage other photographers who have had a tough year?

Know that tomorrow is a new day. Believe that if you really want to do something, you can. Ask for help.

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You can see more of Jackie’s work on Instagram @denverheadshotco and @selahphotographydenver

Top 5 Reasons to Hire Tidy Books for your Photography or Videography Bookkeeping

1. We can take any mess and make it pretty.

   Last week I got on a call with a photographer after catching up her books from the past 9 months. The first thing she said was, “How bad was it?” We laughed and I assured her that we’ve seen it all and there’s nothing that phases us.

   The fear of showing someone else your messy books can be intimidating. Especially if you’re “not a numbers person.” But it’s what we love to do - take your mess, tidy it up and show it to you in a way that is refreshing.

   As one client said, “they took my mess of accounts and made things work beautifully together in Quickbooks.”

2. We know the unique challenges photographers and videographers face.

   Because Tanya, the owner of Tidy Books, has run a photography business herself, she gets photographers. And because our team works exclusively with photographers and videographers, we can anticipate the challenges you face.

   We have a proven process to carefully manage your books and work with outside softwares like 17hats, Dubsado, Honeybook, Shootproof, PixieSet, etc.

   Running a business can be lonely. We can be a sounding board for your concerns, successes and dreams. Then we can help you use your numbers to be proactive about meeting your challenges and reaching your goals.

3. We can prepare you for the fluctuating nature of the industry.

   Cash flow is the number one frustration we hear from photographers and videographers. You make a ton of money but you feel broke. Where has all the money gone?

   Once we make sure your numbers accurate and up to date, we can help you plan ahead and prepare for low income months. This means you can give yourself the paycheck you want. Some clients even say they feel like they’ve gotten a raise. At the very least, you’ll have consistency and peace of mind.

4. We care about your business as much as you do.

   While you’re busy doing what you do best, we keep a close eye on the money coming in and out of your business.

   We make sure your numbers are accurate. We look for unnecessary expenses. We treat your business like we do our own. Which means ultimately we want you to reach your goals, make more money and pay yourself well.

5. We can show how your profit compares to other photographers and how to increase them.

   Because we have our eyes on lots of other photographers like you, we can show you how your numbers compare to other photographers like you. We look for common areas of overspending or areas where you could increase profit. We work with you to create goals and can keep you on track through out the year.

Do you need help getting organized and staying organized with your business finances? We offer complimentary discovery calls to review your bookkeeping system and give recommendations for moving forward.

Fall Bookkeeping Special: 30% off First 3 Months or $120 off Quickstart

In light of all that 2020 has held, we’re rolling out our BIGGEST discount ever this fall. 30% off First 3 Months of full-service bookkeeping or $120 off Quickbooks Quickstart (see details below).

Lots of photographers are getting back on their feet and adapting to a new normal. We want to help.

Full Service Bookkeeping

• You delegate the details of your monthly bookkeeping to us. Then we give you peace of mind that everything is up to date and accurate each month, quarter and year. We can even start at January 1, 2020 and make sure that every single thing is tracked accurately for the year in Quickbooks Online.

Quickbooks Quickstart

• If you’d prefer to go the DIY route, our Quickstart package gets everything set up for you in Quickbooks and then launches you to successfully continue on your own. We even schedule a 90-day check-in to make sure you’re on track and answer any questions your have.

Ready to get started? Click below and mention the code ‘Fall2020’ to get 30% off your first 3 months of a monthly bookkeeping package. Or $120 off a Quickstart Package.

Offer expires October 15, 2020. You must book a consultation or reach out before October 15 to receive the fall pricing.

Tidy Books featured on the Bokeh Podcast

I was recently interviewed on The Bokeh Podcast and had a great conversation with Nathan Holritz. We talked about all sorts of things, especially focusing on how to simplify your bookkeeping as a photographer.

You can check out the episode here or on the Apple podcast app or follow Spotify.

Bookkeeping Breakdown for Photographers: What is Bookkeeping?

I was recently talking with a photographer who admitted: “I don’t really know what bookkeeping is.” It took some courage to admit that, and I wonder if others can relate.

So here it is in my very unofficial terms: Bookkeeping is the way you track all money coming in and out of your business. It also involves compiling all of the numbers in a way that you can report to the IRS.

It can be done on pen and paper. It can be done on a spreadsheet. It can be done in Quickbooks. The IRS doesn’t really care what method you use, but they do care that they receive the necessary information about your business finances in order to file taxes.

If you were ever to be audited, the more accurate and detailed your records are, the less painful that process will be.

Often bookkeeping is sloppy and practically non-existent, which results in lots of scrambling at tax time. Or it can be organized and simple, even streamlined. 

It can be a last minute catch-up at the end of the year. Or it can be a steady effort of record-keeping throughout the year. 

Bookkeeping can be stressful. It can keep you awake at night. Or it can be empowering. If you’re proactive, it can propel you towards your goals.

Guess what? You get to decide how you go about your bookkeeping. You’re the business owner. 

Even though the IRS doesn’t care how you go about tracking your finances, you should. Keeping detailed, simple records will serve your business by not only giving you peace of mind, but by giving insights into your business so that you can make strategic decisions.

Do you need help getting organized and staying organized with your business finances? We offer complimentary discovery calls to review your bookkeeping system and give recommendations for moving forward.

You've received a PPP loan for your photography business. Now what?

If you’ve received a PPP or EIDL loan for your business - congrats! Your next task is to properly record and track the receipt and spending of those funds. This is especially important if you hope to receive loan forgiveness.

In order for you to receive loan forgiveness, you will need to make sure you are 1) spending your funds on the right things and also 2) tracking and proving your spending.

(This is meant to be a basic overview - please check with your CPA for further guidance and your bank for the full terms of your loan.)

Here are five main takeaways:

1) Consider opening a separate business checking account to track these funds.

Transfer the exact amount of your loan into that account. Do not put any other funds into that account (ever).

Do not spend or transfer any money from this new checking account except for approved payments, and then only in exact amounts with documentation showing the amount and use of the funds.

It is not required to open a separate account, but since forgiveness will rely on accurate documentation, this is an easy way to track spending of the loan money. If you don’t open a separate bank account, consider starting a PPP loan tracking spreadsheet and keep detailed documentation.

2) Record the deposit of your loans and advances.

When you receive your money, you (or your bookkeeper) will record it as either a loan or advance on your books. Note: this is about to get really nerd-y, so if your eyes start glazing over, continue to the next section)

• Loans are recorded as liabilities. For example: PPP Loan Payable.

• Advances and loan forgiveness are recorded as Other Income and noted as non-taxable money. For example: EIDL forgiven advance - nontaxable.

• Once you apply and receive forgiveness, you (or your bookkeeper) will move the forgiveness amount out of “loans” into an Other income account. For example: PPP loan forgiveness - non-taxable.

3) Determine which of your expenses are eligible for loan forgiveness:

• 75% spending on payroll costs: Salaries and Wages, health benefits, 401ks

• 25% spending on other expenses: mortgage interest, rent, utilities (which include phone & internet) *

• These cannot be brand new expenses - they have to have been in place before Feb 15, 2020

• Forgiveness is eligible on expenses incurred within 8 weeks following receipt of your money

4) Track spending of your funds:

• If you use Quickbooks Online and you know what class tracking is/have class-tracking capability, use this to track all expenses from your loans.

• Or keep a spreadsheet to track all expenses within the 8-week period.

• However you track your expenses, the important thing is that you are able to produce documentation of how you spent the funds. This means: payroll summary reports, rent receipts and utility receipts.

5) For self-employed:

• Your loan was based on your 2019 net profit, instead of payroll records. Therefore, you don’t need to spend 75% on payroll. Instead, 8 weeks of your 2019 profit can be automatically forgiven. You will want to calculate that based on your 2019 profit.

• For the remainder of your funds, you’ll want to track as detailed above.

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Tanya is a professional bookkeeper who works exclusively with photographers. To schedule a one-on-one to see if Tidy Books can help bring clarity and organization to your business, click here.

Spring Cleaning for Your Books: special rates

I’ve been doing some major Spring cleaning in my home. It’s so refreshing and inspiring.

When you get your books organized and up to date, something similar happens. Here’s how clients describe it:

• “I feel a great weight has been lifted off my shoulders”

• “I feel so relieved”

• “I can sleep at night again”

• “My brain space is freed up to focus on other parts of my business”

If you’re ready to get organized and get clarity around your business, now is the perfect time. It’s not too far into the year that you can’t remember what that Amazon purchase was from January. But it’s far enough into the year that you have solid data to determine your goals for the rest of the year.

Even in the midst of the Covid pandemic, I still believe it’s a great time to get your books in order. It’s more important now than ever to have accurate numbers. Business may be slow right now, but this is one proactive step you can take to make sure your business thrives when this is all over.

Spring Cleaning Special

When you schedule a consultation* and sign up for monthly bookkeeping you’ll receive 25% off your first three months. When you sign up for a Quickbooks Quickstart package, you’ll receive 15% off the total package price. Mention the code Spring20.

*offer ends May 31, 2020

Click below to schedule a free consultation and review of your books.

Let's Talk About Quickbooks for Photographers

Should I use Quickbooks for my photography business?

This is one of the biggest questions I get asked by photographers. In my professional opinion, the answer is…….Maybe.

Hopefully this answer doesn’t disappoint you. Let me try to break it down for you.

If you answer yes to the following questions, I would recommend using Quickbooks Online.

• Do you currently make over $100k?

• Do you plan to scale to $100k+ in the next few years?

• Do you plan to outsource your bookkeeping in the next few years?

• Do you currently or plan to work with a CPA?

• Do you want to have access to insights that will help your business grow?

• Are you willing to put some time into learning the platform (especially if you know it will give better insights into your business?

If yes, then Quickbooks Online is worth diving into. With Quickbooks Online, the reporting features are much more robust than the other options out there. If you’re building a serious business, you’re going to want the full capability of the reports that are offered.

You’ll be able to not only get organized and professional with your books, but you’ll be able to use those numbers to gain insights into your business. It’s also a standard used among many CPAs and bookkeepers. So when you do delegate, you’ll be ready to go.

If you answer yes to the following questions, I don’t think you need Quickbooks Online (unless you want to, then by all means go for it).

• Is this a side business?

• Do you currently make under $50k in sales?

• Do you plan to stay under $50k-100k in yearly sales for the duration of your business?

• Are your books fairly straightforward? i.e. one bank account, minimal expenses

• Do you get intimidated about using Quickbooks?

• Do you plan to keep doing your own books for the duration of your business?

If you answered yes to these questions, you probably don’t need Quickbooks. Consider using a CRM like Dubsado or Honeybook to track your finances. They aren’t nearly as robust as Quickbooks, but you might find that it’s just what you need.

Or use Quickbooks Self-Employed. This is actually a different product than Quickbooks Online. QBSE is designed for contractors or freelancers who have minimal expenses and maybe don’t even have a separate bank account. Again, it’s not nearly as robust as Quickbooks and I wouldn’t recommend it for a scaling business, but it might be right for you.

Find more tips like these in The Photographer’s Guide to Bookkeeping.

Tidy Books featured on Shootproof

It was such an honor to be featured on Shootproof at the beginning of 2020. I heard from a ton of photographers who really resonated with it.

Check it out here for tips that speak to the unique challenges of photographers.

12 Signs Your Bookkeeping System Needs a Makeover

Whether you’ve been in business for 15 years or you’ve just started, consider taking a fresh look at how you are handling your finances. If this list describes you, it might be time to try something different:

1. You procrastinate or freeze every time you think about numbers

2. You have a basic system in place but you’re never sure if you’re doing it right

3. You’re playing “whack-a-mole” with issues that come up but don’t have a grasp on your finances as a whole

4. You spend A LOT of time troubleshooting and researching your current system

5. You’re pretty sure you’ve missed out on tax deductions this year

6. You can’t tell how much you’ve paid yourself this year

7. You spend a lot of time on manual tasks that could be automated

8. You use a few different softwares but don’t know how to connect them all (like 17hats, Honeybooks, Shootproof, Acuity, etc.)

9. You are mixing business and personal money

10. You make a lot of money but can’t figure out where it went

11. You wish you had a big picture of money coming in and out of the business

12. Thinking about your finances keeps you up at night

Maybe you can relate to some or all of these things. So what’s next? First, try your best to work with your current system so that you can really evaluate where you need the most help. Start with making sure you’re doing these essential tasks. 

Talking with a bookkeeping professional is another great move. They can help you get back on track and give you tips for making sure your books are accurate and up-to-date.

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Tanya is the owner of Tidy Books - a bookkeeping firm that works exclusively with photographers and freelancers. She “gets” photographers and loves to support them with their finances so they can focus on their strengths and grow their business. She specializes in helping to maximize Quickbooks and getting the bookkeeping weight off of the shoulders of business owners.