Artists- Let's Talk Tax Deductions

Information by Artists Market 2018: How and Where to Sell Your Art

Artists Let's Talk About: Tracking Small Business Finances Pt. 2

Information from Artist’s Market 2018: How and Where to Sale Your Art

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If you missed Part 1 of the discussion just click HERE

Artists Let's Talk About: Tracking Small Business Finances

Small Business Notes

Hey artists let’s trade small business notes. These are some things I have learned being a small business owner for the last 3 years. I’ll give you the “technical” version of what you should do then I’ll give my personal experience with each of these and what I use personally. 

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Tracking Finances

• Open a business account SEPARATE from your personal account. There are many a simple Google search will give a list of good ones.

  • I would recommend Lili, this is a free business account that has some accounting tracking features as well and you can upgrade at any time.

• Choose accounting software. Again, this is something you can Google.

  • I personally use QuickBooks Self Employed. I’ve been using this the entire time I’ve had a business and not many complaints but I cannot connect it to Stripe.

• When tracking your expenses with your accounting software, categorize each expense. 

  • I personally find that taking the time to do this makes things a lot easier in the long run especially when it comes to running reports or doing taxes.

• Connect your bank (business account) to your accounting software. 

  • Again, QuickBooks is great it just does not connect to the Stripe software which I use when I get sales on my website.

• File your receipts.

  • I usually scan mine, the Lili bank account I mentioned above has this feature, so does QuickBooks.  

• Record and review expenses. 

  • Every time I purchase something I record it through my bank app and accounting software to keep track.

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Staying on Track and Getting Paid

• Keep track of “assignments” and correspondence (assignment number, client name, and all communication)

  • For this I create invoices, there are 3 different software I use sometimes (depending on availability and the custom siltation). You can create invoices on Lili, QuickBooks, or PayPal Business ( I think you can also use Squarespace now but I haven’t used it to make invoices)

• Start with hourly rate for work assignments

  • I have yet to do hourly rates because I taken a break from commissions, but I do recommend doing this instead of a flat fee because I’ve found that people will always try to get free work no matter how affordable you try to make it and if you’re charging by the hour they’ll think wisely about asking you to do more work than necessary (and I mean revision after revision)

• Go to graphic artist guild for more information of how to set prices:

• (usage)- charge more for to buy out all rights (relinquishing all rights to work, resale value for work goes down) 

• Mediums- oil and acrylics are more expensive than watercolor. Paintings are priced higher than drawings. 

• Expense of materials- change more for work done on expensive paper than done on lesser grade paper. 

• Size- charge more for larger work

• Status of Artist- More well established can charge more than lesser known artist

• Status of Gallery- Prestigious galleries can charge more

• Region- work sells more in larger cities

• Galleries- Will charge from 30-50% commission. So price needs to cover the original expenses plus gallery commission however if the price is $500 it should be the same in a gallery bc to do otherwise would devalue the work. 

• Turnaround time- Quick turnaround = charge more.

• Budget- Ask about the budget for projects. If the budget is big, ask for bigger pay. 

• Reputation- the more well known you are, the more you can charge. As you become more established, slowly raise your prices. 

Resources:

https://www.forbes.com/advisor/business/how-track-business-expenses/

https://www.cnbc.com/select/best-expense-trackers-for-small-business-owners/