When you own your own business, you have to learn the basics of accounting. As an artist, I have learned every aspect of my finances so I can contribute to my family but also correctly pay taxes and run my business. As a mom, I had to streamline my expenses so I could stay on top of my business but have time for my family. If you are just starting out as an artist, you must learn how to calculate your expenses correctly, so that you make a profit but also don’t spend too much on items you need. Below are a few of my favorite tips to ensure that your expenses are handled.
Master Credit Card
I have one master credit card that I use for all of my expenses when it comes to my painting business. This way, I have all my purchases in one place. I have one bill to pay and have the option to check statements for what I have purchased in the past. All my information is in one place, making it easy to keep track of my expenses for tax season. I do not recommend having multiple credit cards for your business as you could easily overspend or miss a monthly payment.
Know Shopping Hot Spots
You will need materials as an artist. From paint brushes to paints and canvases, you will need certain materials depending on the client you are working for. Learn the hot spots in your city for good deals on art supplies or find a vendor online to work with. Find the best deals so that you save money on the expenses you have based on your business.
Keep Track of Spending
Keeping track of your spending is very important. While using one credit card can help, it is also beneficial to have a tracking system of sorts. This can be done by hand or online. I prefer to use Excel spreadsheets or a system such as Outright, which can be found online. This way, I am able to keep track of what I am spending. I have a record I can go to and make adjustments in my spending as needed. If I see I purchased too many of something or spent too much, I will then be able to make changes in my spending habits for my business.
Hiring an Accountant
If you find that your business is expanding and you cannot handle the influx of information in regards to your spending, consider hiring an accountant. An accountant will be able to provide you with financial assistance to ensure your business is on the right track.