Bookkeeping Tips for Independent Artists

[@NCWildHeART]

This is super helpful! Thank you! Getting ready to do my taxes for the first time as a sole proprietor. You also helped me organize my studio. Thank you so much for what you do!

[@CaleighBirdArt]

Yay! Thrilled to hear it! Thanks Myra :):):)

[@juliebruns3356]

I’ve watched a few of your videos. You’ve been very helpful and encouraging. I’ve been creating a bunch of art, selling some to friends and family, but really want to try the website/business thing. The creating is easy and I now have a decent inventory. The business part is completely overwhelming- it’s like hitting the giant wall of fear. I really appreciate all of your advice and tips. I’ve subscribed to your page and look forward to more. Thanks 😊

[@cindynelson7313]

Thank you! I appreciate your help 😊

[@hannahquinteroart]

I really like how you separated everything into different categories. This makes it look so simplified! The Wave system you use looks helpful in breaking everything down. I use the Stride app on my phone for seperating expenses, tracking mileage and income but need to get better at organizing where what expense goes where.

[@CaleighBirdArt]

It sounds like you're headed in the right direction, Hannah! Once you know how to break things down, it literally takes minutes when it's time to implement. I've never heard of Stride but it may have a way to organize into categories as well. Glad I could help you get started in the right direction early in 2023 :):)

[@micheleyoung9292]

This is such a great topic for a video, Caleigh--very helpful! Thank you so much!

[@CaleighBirdArt]

Glad to hear it Michele! I figured it was the right time of year to share it:):)

[@joannehopper261]

Awesome! Thank you Very much!!!😊

[@peachmelt]

Thank you so much i found your video supppper helpful ❤❤

[@donnarichardson0801]

Income and expenses seems pretty straight forward. How do you keep track of inventory? Wave doesn't do that does it? Do you use another software program or calculate inventory separate? IRS needs a Cost of Goods Sold number at year end.

[@makinsavage5975]

This is very helpful!

[@CaleighBirdArt]

Glad to hear it! I figured it was the right time of year;)

[@makinsavage5975]

If you have a business bank account and a personal bank account do you have a formula of how much to pay yourself so that you always have money to spend on that art business and also pay yourself.

[@CaleighBirdArt]

No I wouldn't say I have a formula, because everyone's journey is so different. Honestly for he first year or two, many artists make so little that perhaps leaving it all in the biz account as 'seed money' for supplies etc is a good idea (if they have other income of course). Otherwise, I would say you never want to clean your own biz out, much better to adjust it modestly as your biz slowly but steadily grows. Probably the more time you are able to make money at art and the less time you'll need another job, the higher percentage you'll pay yourself :)

[@CaleighBirdArt]

Great question! Thanks for being here!

[@beckyscott8529]

What about Inventory and cogs?

[@CaleighBirdArt]

Not sure what cogs means. And I would think inventory would be a separate log that would maybe only need to be reckoned at the end of the year. I keep my inventory low so I don’t worry as much about the carry over.

[@Aaaashleyy]

What if you mainly use cash

[@CaleighBirdArt]

Great question, Ashley! I should have specified in the video. You can still log it on paper as well as in the Wave app (and probably any other accounting software as well). In that particular app at the top of the Accounting Ledger page (the page where you see everything listed out) there is a way to manually enter in cash sales which you can categorize just the same as the automatic cc sales that come in. Hope that helps:):)

[@shannaandersonzongo8128]

If you’re getting paid in cash most POS systems have a way to log that also so it’s in the same place as your card sales. For example square can charge a credit card but I can also enter a cash sale so my sales records for a specific event are accurate. If you have your POS like square hooked up to your accounting software like wave then it can still track a lot of that without you having to do more manual entry.