If you do a crowdfunding campaign, all of the funds you received are taxable income. However, presumably, you’re crowdfunding in order to use that money to do something, and accountant for artists when you do, you can deduct those expenses, Cole said. “So as long as you document those expenses really carefully, they probably will offset each other,” she explained.
Compare the five accounting programs in this article to find the right one for your artistic endeavors. As a Gorilla Accounting client, you can benefit from the many services we offer, including help with tax returns, HMRC self-assessment submissions and VAT returns. Agro Accounting is a company of certified CPAs with a focus on the arts. Depending on how you look for accountants, some might be unfamiliar with the ins and outs of an artist’s financial needs and challenges.
a writing, co-learning, and resource sharing space for an arts ecosystem with big ideas and bigger questions.
Our friendly team is ready to assist you and answer any questions you may have. Many artists and creatives operate as sole proprietors for tax reasons, self-employment taxes are a major consideration. Account Junction can calculate and even schedule your projected payments for you to ensure you stay on track throughout the year. You can also save thousands of dollars a year if you hire an “Accountants for Artists” accountant specialising in working with artists.
There could be a number of things that you can change because you know the numbers. So, if you have an Etsy shop, it is all of the money that’s coming in, whether it’s the sale that you made, the shipping that they paid, all of that would be considered revenue. For Home Rule Cities, they each have their own rules on frequency of payments and other fees.
Sole proprietorship tax preparation
If you are anything like me, it is hard enough for me to record dates and appointments in my date book! I don’t want to clutter it further with business information. You can computerize your record keeping without the purchase of an expensive accounting program. Using a simple spreadsheet will allow you to keep your business information in a format that will be easy for you or your accountant at tax time. For example, using Microsoft EXCEL you can use one workbook with a tab for income and a tab for expenses.
- VAT is complicated and time-consuming to navigate.
- Also, choosing a specialist artist accountant with an in-depth knowledge of how the art industry works can help you to save thousands of pounds each year.
- This is an inexpensive, manual record keeping system.
- My advice to you is – if you are in doubt as to whether your expense is deductible, keep the receipt and consult your tax preparer.
- Tax audits and inspections can be stressful, so seek professional guidance unless you’re sure of your situation.
I think it’s very easy for some of us to want to just put our heads underneath the pillow. Having that understanding of your numbers brings you freedom. It showed me right away what my highest profit margin products https://www.bookstime.com/ were, and which ones I was really not making much profit on. It can really help you make decisions on what products to sell in your shop. I have an Etsy profit calculator for you in my Etsy Shop Makeover Course.