Time to get your annual photo business financial & tax ducks in a row, hustlers! Don’t wait until April of next year to frantically go through your receipts and financial books while the tax deadline breathes down your neck. Attacking your financial records and tax reports NOW will help you be stress free come tax time!
Follow this checklist to stay on top of this year’s financial records:
1. Send out W-9 tax forms to all your independent contractors you worked with throughout the current year. This gives everyone plenty of time to get them back to you and you won’t miss the reporting deadline.
2. Print out all of your current year financial statements & expense receipts and file as needed in an organized fashion. I like to have a folder for every month and tax categories inside each, organized by date.
3. Throw any extra profits into your retirement accounts to max them out if you can. Doing so now means you can build exponential wealth through the magic of compound interest.
4. Get your current year tax documents together & organized. I like to file all my tax reports and receipts in a special folder just for that category. That way, they’re easy to grab in case my CPA needs them.
5. Pay your 4th quarter estimated income tax payment. This time of year gets crazy busy and it becomes easy to forget to pay this come the new year. Paying now will release that burden to remember to do so.
6. Plan a visit to your CPA & Financial Advisor’s office to wrap up your current year and plan new year’s financial goals. Doing this with your financial advisors can help you keep a realistic mind and they usually have tons of tips and education they can help you out with.
7. Review your current financial (income & expense) report. Make plans for any needed changes for next year. If you saw a decrease in this year’s income, consider decreasing next year’s budget. This way, you won’t be thrown into any unexpected debts.
8. Re-evaluate your insurances for any needed updates: business insurance, life insurance, etc. Did you get new gear this year? Buy a studio? A new car? All of this needs to be considered in your business insurance plan.
9. Perform an end of year inventory check to see if there’s any updates or orders needed to replenish physical / digital supplies, needs, etc. Go through your client welcome kits, branded packaging (tissue paper, bags, boxes, etc.), stationary, printer paper, ink, all of it.
10. Sit down and create new year financial goals for not only your business, but personal life as well. Looking to learn how to profit more in your business? Click HERE for the ultimate photographer’s pricing course.
There you have it friends! Your end of year financial checklist for your photography business!
Have YOU done any of these yet?!? What does the end of year prep look like for YOUR business?!?