Filing your Artsy taxes!
Guess what Artsy Boss....it's time to write off all those art supplies you bought all year! Anyone else LOVE Schitt's Creek 🤣🤣🤣
Nobody likes paying taxes and it can feel overwhelming, but once I set aside the time to do them, I actually don't mind doing my taxes because it gives me a chance to reflect on the year - I remember each party and customer that I got to paint with, the smiles and celebrations, and I get to see how much money I made 🤑
If you have a paint party business, you likely have business deductions you get to take. Even if you operated at a loss. Taking a loss on your business is not always a bad thing!
I remember a few years ago one of our members reached out asking about filing taxes. She said "I have done lots of home based businesses before and this is the first time I've ever had revenue to report!" That's a good problem to have! Filing your taxes sounds intimidating but you don't have to hire an expensive tax preparer. You can easily file your taxes with the Turbo Tax Self Employed version. For self-employed you'll file the Schedule C form. Here are some tools to use when preparing your taxes:
Here is a list of common business expenses you will want to track.
DISCLAIMER: We are not accountants and can't give actual tax advice....but this is a good list to get you started!
Here is the Excel spreadsheet I use to track my party revenue, mileage and expenses.
You could get fancy and use Quicken or QuickBooks....but I have used this spreadsheet for 10 years and it does the trick!
Here is the Party Checklist I use to track my events.
I have done parties for 10+ years and I still use this checklist for EVERY. SINGLE. EVENT.
Most importantly TRACK and KEEP EVERYTHING!
I have a pretty pink box behind my desk and every single receipt goes in that box.
Before I put the receipt in the box I write on it what it's for. Because you will forget by the end of the year!
I have a folder in my email labeled RECEIPTS and I file every online purchase/receipt in that folder.
I keep a folder on my desk starting the first of the year and every 1099 I receive from my venue partners goes in that folder to give to the hubby (aka tax preparer).
I track every meeting and event on my calendar so at the end of the year I can go back and calculate my mileage.
I use the Party Checklist to track the revenue and mileage for all of my events.
Technically I should be doing this regularly throughout the year, but I always wait until my husband asks me at least 37 times for my tax stuff, then I sit down and bang it all out in one long afternoon.
And that's it - see not that hard at all. With a little organization you'll be filing taxes like a pro! Have questions? Holler at us at hello@ArtsyAssociation.com!
Cheers :) M