Bookkeeping Challenges for Wedding-related Businesses

The wedding industry generates billions of dollars every year; an estimated 2.5 million weddings take place annually in the U.S. with an average cost of over $30,000. The need for wedding-related services has led to an unprecedented number of professionals offering a wide range of products popular with not only engaged couples, but their relatives and friends joining the festivities, many of whom need services for gifts and travel. Some popular freelance and small business opportunities in the wedding industry include:

Photography/videography

Decorations and flowers

Custom gifts and favors

Stationary: invitations, thank you cards, photo announcements

Catering

Custom wedding cake design

Transportation

Dress design, tailoring, and alterations

Officiating

DJ and music services

Event planning

Event planning, in particular, has become popular for creative, highly-organized people because weddings usually entail more than just the main event and are often preceded by bridal showers, engagement parties, bachelor parties, rehearsal dinners, and other smaller brunches, lunches, and cocktail parties.

Many of these business ideas start with just one or two people using their talents and expertise to help create a unique and meaningful day for couples. Many are small companies and even side businesses that are run out of a small office or the owner’s home.

Bookkeeping for wedding-related businesses poses unique challenges:

No back office: A lot of wedding professionals have to work in a different location every week, many times outdoors. This makes keeping supplies, equipment, and records of client transactions more challenging because weddings require professionals to be always on the move.

Installment billing: Invoicing for wedding professionals is more complicated than for a lot of other businesses because not all clients pay the same amount or on the same schedule. Most wedding-related businesses charge installment amounts at agreed-upon intervals, making it important to keep on top of due dates and contracted time frames to keep the cash flow going and the customers content.

Expense tracking: Many of the businesses listed above are side gigs that people take on during their weekends for extra money. Those who perform wedding services as a side job need to keep meticulous track of their spending and must accurately track expenses paid with personal funds so that they can be prepared at tax time with all the documentation for eligible deductions.

Sporadic cash flow: While there are always people getting married, even weddings have peak seasons and downtimes. The work is almost entirely weekend work and can hit slow months when nothing is scheduled. To thrive in a wedding-related business, professionals have to budget carefully to make sure the revenue generated during busy seasons is enough to carry the business through slowdowns.

Bookkeeping tools can help

Online accounting and bookkeeping tools can go far in helping wedding-based solopreneurs and small business owners stay financially organized. If you work in the wedding industry, you have to give up a substantial number of your weekends to generate revenue. The remainder of the week is spent soliciting new business, meeting with clients, and setting up space, equipment, products, and supplies for the next upcoming event. You won’t have a lot of extra time to devote to bookkeeping. Online cloud-based tools can:

Send out invoices

Record payments received and those still outstanding

Categorize and track your own expenses

Issue payments you need to make for supplies and inventory

Keep your receipts stored for easier, more accurate tax prep

Create paychecks for those you employ

Online check printing is a great tool for assisting busy wedding professionals. Online check printing through Checkeeper:

·       Integrates with accounting software.

·       Allows you to put your business logo on your checks for better branding.

·       Creates professional checks that look different from personal ones, even if you use the same checking account.

·       Enables you to send attachments—including copies of invoices, pay stubs, payment explanations, and promotional material—with each payment.

·       Offers hands-off mailing so that you don’t have to devote time or supplies to printing and mailing payments.

·       Stores all transactions automatically for easy account reconciling and tax preparation.