There are two photo books I create each year: one at the end of the calendar year to share photos with the grandparents, and one at the end of the school year as a way to remember our homeschooling activities. I am in the process of creating one right now (which is late for me) and I thought I'd share a little about it.
A homeschooling photo book particularly makes sense in the early years, especially if your kids aren't that into writing like mine were. I didn't have tons of work samples to share. We did a lot of hands-on learning and that doesn't always shine through an end of year progress report. I submit a progress report to the superintendent, but the photo book is for us. I often don't remember to take photos while we are working on stuff, but if I do, those photos usually make it into the book. As I go through the photos, it helps me summarize our year for the end of year report.
Here are a few pages from our last year's book (from top to bottom: art, farm school, museum visits, science & engineering). I use Shutterfly hardcover books and usually wait for a nice coupon code, but you can choose softcover or shop around for a better deal. You may also want to check out Picaboo.