Tips for Starting a Photography Business

So, you are thinking of becoming a self-employed photographer. Here are a few considerations to ensure you remain compliant

Start a full time Business

Instead of the side hustle approach, you can start with the intent of it becoming a full time business. Assuming you decide to be self employed (instead of setting up as a partnership or company), here are our top four tips to start you on the right footing.

Cashflow

Cashflow - businesses live or die on cashflow, and it is important you consider this before starting your business.

Forecasting your cashflow for the first year (at least) is vital, and is often overlooked. As an example, you may set-up as a photographer and already have summer weddings booked in that will pay you a total of £6,000 this year. You are confident these will lead to further business and referrals, so are starting well.

However, if these initial events are not for another three or four months - when will you receive the money? You may only receive deposits now of (say) £2,000, with the balance of £4,000 not being received for quite a while. Will the £2,000 be sufficient to cover planned business expenses (e.g. advertising and marketing, insurance, website costs etc.) and do you need to draw any money out of the business (e.g. rent or mortgage)?

A cashflow forecast will answer these important questions, and should be part of your initial business plan.

Part of our service for any new business is to create an initial cashflow forecast.

Keeping Records

It is recommended to get into the habit of correct recordkeeping from day one. Keep records, or employ a bookkeeper of accountant to do it. We would recommend dedicated software over a spreadsheet, as it makes invoicing, tracking payments and completing tax returns and annual accounts much easier.

If you pick the right bank account (and you should have a business bank account from day one), reasonable software may be included in the package. A business bank account should be free - for an initial period, at least.

All our clients use the same software product, making our compliance process efficient for clients and us. The cost of the bookkeeping product can be included in our service packages, so there are no additional software fees.

Staying compliant

Ensure you set a reminder to register with HMRC - if you are confident your first year revenue will be over £1,000, then there is no harm in registering straight away, so you don't risk forgetting and incurring penalties later. Registering with HMRC is straightforward, so shouldn't be put off until the last minute

Chose an accountant

Your strengths lay in photography and creativity. Running a business with no help can be daunting - picking the right accountant partner for your business will free your time to nurture your customers, and hand the administration over to the experts.

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