The Holidays... I had a dream last night (OK, maybe more like a nightmare!) that I woke up and it was Christmas morning, and I had forgotten to put up the Christmas tree/decorations or buy any presents!!! I may have woken up in a cold sweat feeling like I am so behind - Can anyone else relate? Why does it feel like the holiday season sneaks up on us more quickly every single year??? (Photo Credit: Ivory Mix)

2024 Goal-Setting Workbook

But that's not all! I've cooked up a couple of extra treats for you:

2024 Planner Originally designed to help me track/control my migraines, this digital planner has evolved into a versatile tool. You can grab the planner with migraine tracker or just the plain daily planner or both! And please feel free to pass this email along to any friends you believe may benefit from these. While you are welcome to print it out, the PDF (over 400 pages!) has been created as a digital tool to use in your favorite note-taking app (I use GoodNotes!) with hyperlinks included throughout to better help you navigate throughout the planner. And, if you would like to purchase this planner in another color or without my Nicole Toerber Art branding, please let me know, and I can make them available for sale. 2024 Planner w/ Migraine Tracker​ 2024 Daily Planner

Dotted Daisies Gift Tags The last goodie I wanted to make sure you had was my free Dotted Daisies printable gift tags that pair perfectly with my Dotted Daisies Collection available on Spoonflower: https://www.spoonflower.com/collections/774790-dotted-daisies-by-nicoletoerberart Click here for the printable gift tags: Dotted Daisies Gift Tags

Looking to the Year Ahead...

As we gear up for 2024, my word for the year is CREATE. I plan to create a lot of art and new collections in the coming year. And while my goals might be pretty lofty (mini-collections each month and bigger collections each quarter), in the words of Norman Vincent Peale, "Shoot for the moon. Even if you miss, you'll land among the stars."

What is your word for the year? Do you have any lofty goals?

I'm so glad to have you join me in this new year - Wishing you a festive holiday season and an artfully amazing new year!

Creatively yours,

~Nicole

 Hello, fellow creative souls!

Today marks the beginning of an extraordinary adventure – one that holds the promise of turning your artistic dreams into a reality. As artists and creatives, we're driven by a passion that ignites our souls. We yearn to share our unique visions with the world, and we dream of turning that passion into a sustainable and fulfilling business. Yet, we often find ourselves at a crossroads, uncertain of where to begin or how to navigate this intricate path.

Well, consider this your guiding light. Allow me to introduce you to the 30-Days to Your Creative Business Journal – a companion that will walk with you step by step through the process of building your own successful creative business.

Unveiling the Journey:

This journal isn't just a collection of pages; it's a transformative journey meticulously crafted to help you shape your aspirations into reality. Each day, we'll embark on a new task, delving into the heart of what it takes to create a thriving creative venture. From defining your vision to the nitty-gritty of legalities, from crafting a compelling brand to building an engaging website, and from attracting customers to nurturing a loyal community – this has you covered.

More Than Just Tasks:

This journal isn't about daunting to-do lists. It's about infusing your creativity with a strategic approach that sets you up for success. But beyond strategies and checklists, it's about empowerment. It's about you discovering the immense potential within yourself and gaining the tools to unlock it. 

A Glimpse Into the Future:

But hold on, this journal is just the beginning. In upcoming blog posts, I'll dive even deeper into the tasks outlined in the journal. I'll help you unravel the complexities and offer actionable insights to help you as you walk down this path.

Get Ready For Your Journey:

Are you ready to embark on this journey of self-discovery, growth, and creative entrepreneurship? Are you ready to give your dreams the wings they deserve? Then, my friend, I invite you to grab your copy of the 30-Days to Your Creative Business Journal and join in on this transformative experience.

Breathe life into your artistic dreams, one page at a time. Don't just build a business, but build your legacy. Turn creativity into a force of nature!

Download your copy today!

Greetings, fellow creative entrepreneurs! Congratulations on successfully setting up your creative business! As you reach the end of your first month, it's essential to approach your accounting tasks strategically. Proper month-end accounting ensures accurate financial records and sets the foundation for effective financial management. In this blog post, I'll guide you through the process and provide valuable tips to streamline your month-end accounting for your creative business.

Step 1: Review Bank Transactions:

As the saying goes, "Cash is king," and having a separate business bank account is a smart move. (See my post on setting up your business bank account here.) Begin by thoroughly reviewing your bank statement for the month. Go through each transaction line by line and identify whether it is income or an expense. Consider using a red pen or digital marker to mark each transaction on the bank statement for clarity.

Step 2: Categorize and Enter Transactions:

Once you have identified the income and expense transactions, it's time to enter them into your chosen accounting system. Whether you use accounting software, spreadsheets, or cloud-based platforms, ensure consistency in categorizing transactions. Assign appropriate income and expense categories to each transaction to maintain accurate financial records.

Step 3: Reconcile Cash Balances:

Reconciliation is a critical step in month-end accounting. It involves comparing the cash balance recorded in your accounting system to the bank statement balance. By reconciling the two, you can identify any discrepancies and ensure all transactions are accurately recorded.

To reconcile, cross-reference each transaction on your bank statement with the entries in your accounting system. Make sure all deposits, withdrawals, and fees are accounted for. If you discover any discrepancies, investigate and rectify them promptly.

Step 4: Review Accounts Receivable and Accounts Payable:

Beyond bank transactions, it's essential to review your accounts receivable and accounts payable. Accounts receivable refers to the money owed to your business by customers, while accounts payable represents your outstanding debts to suppliers and vendors.

Ensure that all invoices issued to customers and bills received from suppliers are recorded accurately in your accounting system. Confirm that any outstanding balances are correctly reflected, and follow up on any late payments or outstanding bills.

Step 5: Analyze Financial Reports:

Take the opportunity at month-end to generate financial reports that provide insights into your business's financial health. Key reports to review include profit and loss statements, balance sheets, and cash flow statements. Analyzing these reports helps you assess your revenue, expenses, assets, liabilities, and cash flow patterns.

Pay attention to any significant fluctuations or trends in your financial data. This analysis can guide your decision-making and help you identify areas for improvement or potential opportunities for growth.

Step 6: Plan for the Next Month:

With your month-end accounting tasks complete, take a moment to plan for the upcoming month. Update your budget, set financial goals, and consider any upcoming expenses or business investments. Effective planning and forecasting allow you to proactively manage your finances and stay on track towards your business objectives.

Approaching month-end accounting for your creative business requires careful attention to detail and a systematic approach. By reviewing bank transactions, categorizing and entering them accurately, reconciling cash balances, reviewing accounts receivable and accounts payable, analyzing financial reports, and planning for the future, you can maintain accurate financial records and gain valuable insights into your business's financial performance. Stay organized, stay proactive, and leverage your month-end accounting practices to drive the success of your creative business.

Get your TOP 10 Tips for Starting Your Successful Creative Business HERE!

www.nicoletoerber.art/home/

The information contained in this blog is for educational purposes only. It is not intended to be relied upon as accounting, legal, or tax advice. Laws are subject to change and the content included in this blog may not reflect all changes to date. Please see full disclaimer here.

Copyright © 2023 Nicole Toerber Art, LLC - All rights reserved - Disclaimer, Terms of Use & Privacy Policy

Greetings, fellow creative entrepreneurs!  Today we’ll discuss how to keep your paperwork organized so that you can find what you need when you need it. Grab your file folders, fire up your cloud storage, and let’s get started organizing that paperwork!

Why is it important to keep your paperwork organized, you ask? Well, maintaining an organized system will save you countless headaches when it comes to bookkeeping (check out my previous post on that topic here). By having all your supporting documentation neatly organized, you’ll breeze through your monthly bookkeeping and your periodic tax preparation. You’ll even be more prepared to handle potential audits with ease. 

So, what sort of stuff should you keep and for how long do you have to keep it?

According to the IRS guidelines outlined in Publication 583 (linked here), having receipts for expenses is key. Mere line items on your bank statements won’t suffice if you should ever find yourself under the scrutiny of an audit. As the IRS website states, “Proof of payment of an amount, by itself, does not establish you are entitled to a tax deduction. You should also keep other documents, such as credit card sales slips and invoices, to show that you also incurred the cost.”

Per the IRS guidelines: 

• If the payment is by check, it must show the check number, amount, payee name, and date
• If the payment is by electronic  funds transfer, it must show the payee’s name, amount transferred, date
• If the payment is by credit card, it must show the payee’s name, amount, and date

In general, the IRS states that you should hold onto your records for a minimum of three years, but you may want to hold onto them for even longer. The Period of Limitations per the IRS guidelines are:

• If you owe additional tax and situations 2, 3, and 4, below do not apply to you, then 3 years
• If you do not report income that you should report and it is more than 25% of the gross income shown on the return, then 6 years
• If you file a fraudulent return, then there is no limit
• If you do not file a return, then there is no limit
• If you file a claim for credit or refund after you filed your return, then the later of 3 years or 2 years after tax was paid
• If you file a claim for a loss from worthless securities or a bad debt deduction, then 7 years

Now let’s discuss how best to organize your paperwork - First, you’ll need a physical file system with trusty folders for all your paper documents. You could organize your folders in many different ways, but one easy approach is to grab 12 file folders, label them for each month of the year, and sort your paperwork by month. Within each monthly folder, further organize them by sections such as bank/credit card statements, expense categories, etc.  You could also organize your folders by vendor/bank/service provider and keep all related paperwork within each vendor folder for each year. The important thing is to devise a system that works for you so that you can maintain it each month.

In today’s digital world, we have a lot of virtual documentation. For all your digital receipts, emails, and other digital goodies, it helps to have a similar system in digital form. Again, there are different ways to organize your digital files, and the best bet is to find an organization system that works for you. Personally, I organize my files by vendor/bank/service provider/etc. Just remember to tailor your file names to include the relevant name and date so that the files sort accordingly. Tailor the system to your liking. But, remember to always save these digital folders to a reliable cloud storage service like Google Drive, iCloud, Dropbox, or some other cloud storage to protect yourself from the dreaded hard drive failure..

Don’t forget to organize any other documents that accumulate during the month, both digital and hard copy. It’s also wise to file away your sales tax permit, prior year tax returns (income tax and sales tax), as well as any legal documents, contracts, and important papers.

Remember, a well-organized system will be your ally in the realm of bookkeeping, tax preparation, and audits. So, fear not the paper trails and digital mazes - Embrace them and let your artistic brilliance shine through the organized chaos.

Stay tuned for more posts where we’ll uncover additional gems to help you navigate the path of creative entrepreneurship. Until then, keep creating, keep organizing, and keep painting the world with your brilliance!

Get your TOP 10 Tips for Starting Your Successful Creative Business HERE!

www.nicoletoerber.art/home/

In this blog post, we’re going to address a common question that may have crossed your mind: “When do I need to start treating my hobby as a business?” Well, the answer is simple: Sooner than you think!

The distinction between a hobby and a business can seem muddy, but it’s really not. It really boils down to intent - If you aim to turn your creative passion into a source of income, whether it's a full-time endeavor or a side hustle for now, it's time to shift your mindset and view your art practice as a business. But hey, if you're purely enjoying your art as a hobby without any plans to monetize, then feel free to skip the rest of this blog post. However, if you're even earning a few hundred dollars from selling your art, it's worth reading on! 

So, what exactly differentiates a hobby from a business, and why does it matter?

When it comes to taxes, if you make money from your art, you're obligated to report that income on your income tax return. As a hobbyist, you'll report all of that money as income, but unfortunately, you won't be able to deduct any hobby-related expenses thanks to the tax reform in 2018. However, as a legitimate business, you can report both your income and expenses, which allows you to calculate your net profit or loss for your income tax return. Let's break it down with an example:

Imagine you participate in a craft fair and you make $500 in art sales. If you consider yourself a hobbyist, that entire $500 would be taxable to you as “other income” on your income tax return. However, let’s say you had to pay $50 for the entrance fee for the art fair and it cost you another $150 in art materials and supplies for the art that was sold. As a business, you can deduct these expenses and only the net $350 profit would be taxable to you. Assuming your effective tax rate is 20% (federal and state), you’d end up paying $30 more in income taxes as a hobbyist than as a business owner 

So, in considering whether you have a hobby or a business, take some time to reflect on your ultimate goal. If you aspire to make money from your art, no matter how modest or grand, it’s time to start thinking like a business owner!

Stay tuned for my next post where we’ll explore the steps to form your creative business, bringing us one step closer to our dream of turning our passion into profit! Until then, keep painting the world with your brilliance!

Get your TOP 10 Tips for Starting Your Successful Creative Business HERE!

 

www.nicoletoerber.art/home/

The information contained in this blog is for educational purposes only. It is not intended to be relied upon as accounting, legal, or tax advice. Laws are subject to change and the content included in this blog may not reflect all changes to date. Please see full disclaimer here.

Copyright © 2023 Nicole Toerber Art, LLC - All rights reserved - Disclaimer, Terms of Use & Privacy Policy