Record Keeping For Artists
The Importance of Record Keeping For Artists
In the business world there is nothing more important then keeping accurate bookkeeping records even if you have a year-end accountant. Not only will it make your life a lot easier come tax time (especially if you are ever audited and have to prove you are running an actual business) but having an understanding of where your money is going and where it is coming from, allows you to make better informed business decisions. Even if you think you know where your money is going, seeing the actual breakdown may surprise you!
Organizing Your Receipts
Keeping receipts an easy way to keep track of your expenditures but also to prove legitimate art business expenditures. Here are some tips to keep you organized:
- Dedicate one file folder to receipts and divide them by the different tax-deductible categories
- Only use your dedicated art business credit card or bankcard for purchases. You ALWAYS want to keep your art money and your personal separate. This is a really big one, trust me this will save you a lot of headaches later!!
- When you save receipts if the date is not clear, write it yourself. Also, if the receipt is for a business meal or coffee then write the name of the person you were with and their business relationship to you.
- Keep another file folder for income and again you want to divide it by income categories.
Examples of Income Categories
Awards,
Commissions,
Consignment sales,
Direct Sales,
Fairs/Shows,
Gallery X Sales,
Gallery Y Sales,
Grants,
Rentals,
Royalties,
Miscellaneous
Examples of Deduction Categories
Accounting fees
Admissions for art shows
Advertising
Car Expenses
Bank Fees
Educational Books
Commissions to art professionals and galleries
Consulting Fees
Donations
Art club dues and fees
Art education classes, seminars etc
Equipment
Entrance fees to competitions
Mailing list purchases
Materials
Office Supplies
Promotions costs
Telephone
Just to name a few. It is very important that you track everything so that your accountant can help you to claim as much as you can at the end of the year!
Photo Credit
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About Brittany O'Donnell
As the founder of Artistically Connected I am passionate about art and business. I enjoy working with artists at all stages of their craft and learning along the way.
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