Understanding the Finances of Your Wedding Business

Jun 30

By Veronica M. Foster, MWP, VTA

Let’s face it—most wedding professionals didn’t get into this business because they love crunching numbers. You’re creative. You’re a problem-solver. You’re passionate about people and events. But if you want your business to grow and thrive, you must learn to speak the language of money.

Understanding the financial health of your business isn’t just about making sure you’re not overdrawing your account. It’s about knowing where your money is going, how much you’re earning, and whether or not you can afford to scale. And it starts with four key areas: payroll taxes, cash flow, income statements, and balance sheets.

1. Payroll Taxes: Don’t Let the IRS Surprise You

If you pay yourself or anyone else through your business, payroll taxes are your responsibility. This includes:

Social Security & Medicare taxes (FICA)
Federal and state income tax withholdings
Unemployment taxes (FUTA/SUTA)

Even if you hire freelancers or contractors, you may need to file 1099 forms annually. Not properly managing payroll taxes can lead to serious fines and penalties.

Tip: Use payroll software or a payroll provider to automate this process and ensure compliance.

2. Cash Flow: The Lifeblood of Your Business

You might be “booked and busy,” but if your cash flow is off, your business is in trouble.

Cash flow is the movement of money in and out of your business. It’s what helps you:

Pay vendors on time
Cover monthly expenses
Invest in growth opportunities

Even profitable businesses can collapse from poor cash flow. Late-paying clients, seasonality, or front-loaded expenses can lead to dry spells that catch you off guard.

Tip: Create a rolling 3–6 month cash flow forecast so you know when slow seasons are coming and can plan accordingly.

3. Income Statement: Your Profit Report

Also known as a Profit & Loss Statement (P&L), this document summarizes your revenues and expenses over a period of time—typically monthly, quarterly, and annually.

Key elements include:

Gross income (total revenue before expenses)
Cost of goods/services sold
Operating expenses (like rent, marketing, software, etc.)
Net profit (what’s left after all expenses)

Reviewing your P&L regularly helps you understand whether you’re truly making money or just staying busy.

4. Balance Sheet: Your Financial Snapshot

A balance sheet shows your business’s financial position at a single point in time. It includes:

Assets (what you own—cash, equipment, etc.)
Liabilities (what you owe—loans, credit cards, taxes)
Equity (the value of the business after liabilities)

It’s called a “balance” sheet because the equation is simple:
Assets = Liabilities + Equity

Tip: Use your balance sheet to track debt, monitor savings, and understand your company’s actual value.

What If This All Feels Overwhelming?

That’s completely normal. Most successful wedding professionals aren’t CPAs—and they don’t try to be.

If keeping up with financial reports, tax payments, and budgeting isn’t your strong suit (or if you simply don’t have the time), hire a professional.

A bookkeeper or accountant can:

Set up your systems properly
Help you make strategic financial decisions
Save you time, money, and stress
Keep you compliant with federal and state tax laws

You’re the CEO—Act Like It

Understanding your business finances doesn’t mean doing everything yourself. It means taking ownership of your business's success. Whether you handle the books yourself or outsource it, staying financially informed is the difference between owning a business and your business owning you.