© 2013 artist inc only put off until tomorrow what you are willing to die having left undone....

© 2013 Artist INC

Only put off until tomorrow what you are willing to die having left undone.

--Pablo Picasso

© 2013 Artist INC

Budget is not a four letter word:

managing Money and Financial Planning

session

Three

© 2013 Artist INC

Opening exercise

© 2013 Artist INC

what methods do You use?

© 2013 Artist INC

Annie cherry

a series of haiku

inspired by tax

time

can i write this off?

i ask myself while holding

shoebox of receipts.

what am i doing?

paper paper everywhere...

no end is in sight.

husband stares blankly.

neither of us understands

the joy of filing.

hard concentrating,

no matter how much i try.

...kittens, unicorns

what the fuck, i say...

taxes make no sense to

me,

i think in colors

what's the difference

between me and someone

who

this can make sense to?

i can do this, right?

or procrastinate some

more...

what's the date again?

receipts, envelopes,

i have written nothing

down!

dean vivian, help!

© 2013 Artist INC

Robin vanHoozer

© 2013 Artist INC

Chris dahlquist

© 2013 Artist INC

session 3

I. group discussion: the non-starving artist

II. pecha kucha

III. budgeting basics

IV. taxes

V. small group discussion: weekly updates, elevator speeches

© 2013 Artist INC

80% of artists

do Not have a

Budget

© 2013 Artist INC

% of participants With . . .

Art B

udge

t

Busin

ess Che

ckin

g

Finan

cial

Sta

tem

ents

Hea

lth In

sura

nce

Retire

men

t Acc

ount

0%

20%

40%

60%

80%

100%

44%36%

20%

88%

52%

© 2013 Artist INC

rate your Financial Recording Keeping System

0

1

2

3

4

5

6

7

3.48

© 2013 Artist INC

Why do artists Avoid budgets?

© 2013 Artist INC

what methods do You use?

© 2013 Artist INC

Health Insurance

Vacation Time

Retirement Savings

Health Insurance

Vacation Time

Retirement Savings

What Expenses should be included?

© 2013 Artist INC

Revenues Expenses

Profit

what is

© 2013 Artist INC

Pecha Kucha

© 2013 Artist INC

Cheryl Eve acosta

© 2013 Artist INC

Erin mcallister

© 2013 Artist INC

Lisa lala

Hanging Files by my desk"galleries" "pricing" "radio" and all the rest.Then the golden stack of papers that my painting's location nails:Sheets for paintings checked out to venues - also letters from galleries about last months sales.And then that stack goes to my meticulous Hunk Everything he types into Excel, that is where we put this junk.Each painting gets its own little row.And then we can look up whatever we want to know: First a fingernail pic, then it's name,Then an asking price, then the real sale price- sometimes it's not the same.The next column is for gallery commission percentage take and finally the collector's name and address so future contact I can make. Now to tell you the truth, there are a few blanks Sometimes info is incomplete... and your perfect system stanks.But overall it is good to know,where most of these paintings come and go. And then we must open one more program before we're through Quicken tells us more about what we thought we knew.Every receipt matched with each item off the credit card gets put into a category, so we know the real profits. Then we can run reports left, right, and center, How much money for supplies? Just type it in and enter.But some of the news I don't always likes...Really? That much overhead? Yikes.

C 22

© 2013 Artist INC

Ann

reckling

Regardless of intentions,

it seems they’ve flown the coop –

those pieces that I sold (or ‘placed’) –

no longer in the loop.

I think I saw some cash or checks

and thanked my loyal peeps,

who took home my beloved art

and made me one who reaps

rewards that once were tangible,

but now, like clouds of dust,

have disappeared in every way,

dissimulating rust

about the countryside I traveled,

cities close and cities far,

away they went to their new homes

while I, not being one to mar

ephemeral transactions

with vulgar numbers or with notes,

but choose instead the lofty path

of the purist/artist who emotes

surprise and glee just knowing

they liked my rusted treasures!

For, really, isn’t all I need

the glory and the pleasures

of spreading loud and clear the wordszymolysis and wabi-sabi? It warms my heart, regardless ofthat niggling label: hobby. I wouldn’t want to change a thingexcept … okay … perhapsto glean what in the @*#!*&# becameof what I made. This lapse in record-keeping might be seenas negligence of mine,though in defense of laxity,true artists would opine that art for art’s sake rules the day!And should forevermore!Unless …I guess … one wants to eator keep the wolf outside the door. So, maybe I could do a wee bit morein noting what I’ve donewith money and materials: perchancethis class will be square one.

© 2013 Artist INC

Cory imig

© 2013 Artist INC

Ritchie kaye

Since finding spare time to file is always a challenge, doing so while on the toilet works great!

© 2013 Artist INC

Nancy morrison

© 2013 Artist INC Cynthia van roden

Where I keep all my receipts for the year until its time to do taxes—in

my burlesqy closet.The yellow bag is music

related expenses because the bag is

yellow and from Nantucket = fun.

The brown bag is boring old tax receipts and is

from Starbucks.

© 2013 Artist INC

Where I pay my bills each month.

Cynthia van roden

© 2013 Artist INC

What I see when I sit down to pay the bills, organize them, reshuffle them, take deep breaths, etc.

Cynthia van roden

© 2013 Artist INC

Kerwin young

KEEP GOOD BOOKS!

Finance is the name of the game

You either play it

Or you’ll go insane

Deep in debt

Or not there yet

Some hire accountants

To stay in check

I learned the rules

Watching gangster pics

I’ve learned of ledger books and

Corporate tips

Keep good records

Keep them tucked away

They prove your earnings

And your spending to date

The IRS will be watching you

Keeping tabs on the books that you

Have claimed to be your evidence

If they’re not true

You’ll wind up in an audit or

A jail cell, dude

Keep good records

Keep them tucked away

They prove your earnings

And your spending to date

Insufficient reason on your part’s not

good

A small detail could nail you

Write it down

Like you should

© 2013 Artist INC

Natalie

lassinger

C 33

© 2013 Artist INC

Brett jackson

© 2013 Artist INC

Anonymous

On the subject of keeping financial records...

I plead the 5th.

© 2013 Artist INC

Julie little-finger

© 2013 Artist INC

Our doubts are traitors and make us lose the good we oft might win, by fearing to attempt.

--William Shakespeare

© 2013 Artist INC

Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pound ought and six, result misery.

--Charles Dickens, David Copperfield

© 2013 Artist INC

Whatever works for

you!

What is the best record

keeping system?

© 2013 Artist INC

Possibilities

© 2013 Artist INC

Taxes

© 2013 Artist INC

No Receipt for anything Under $75 just Write it down!

• Exceptions• business lodging• business entertaining

• who were you entertaining?• what is the business pitch?

• business gifts• who is the recipient?• what is the business relationship?

write it Down & write it Off . . .

© 2013 Artist INC

all Income is not the Same

1099 vs W-2

© 2013 Artist INC


$500—gross wages Minus $125 federal income tax

(25% rate)

Minus $25 state/local income tax (5% rate)

Minus $38.25 social security and Medicare (7.65% FICA)

Minus $5 local income tax (1% rate)

$306.75—net wages (check amount)

W-2

for a job paying $500 your check would look

something like this:

© 2013 Artist, INC

© 2013 Artist INC


$500—gross wages

$500—check

But, you will have to pay approximately $231.50 taxes at the end of the year, meaning your net is $268.50

$125 federal income tax (25% rate)

$25 state/local income tax (5% rate)

$76.50 social security and Medicare (15.3% FICA)

$5 local income tax (1% rate)

C 21

1099

for a job paying $500 your check will look like

this:

© 2013 Artist, INC

© 2013 Artist INC


you can now Deduct mileage and expenses related to this “business”

you can open or add to a Retirement Account for yourself, sheltering some of the profits

C 22

1099

Benefits of 1099 income

© 2013 Artist, INC

© 2013 Artist INC


often you may have to pay Quarterly Taxes

you must Keep Records of the Income you receive and report it—whether or not you receive a 1099 from the employer

you must pay Both Halves of the FICA taxes (Social Security and Medicare)—with W-2 income, the employer pays half

C 23

1099

Disadvantages of 1099 income

© 2013 Artist, INC

© 2013 Artist INC


20-25% for those in lower tax brackets (single $41,500 or married $83,00)

30-35% for those in higher tax brackets

C 24

1099

what Percentage of 1099 income should I

Save for taxes?

© 2013 Artist, INC

© 2013 Artist INC

C 52

run a Profitable business from your Home

1. Do the essential service at home. Make most of your money at the house, by doing the essential service of the job.

2. Do most of the work at home. Spend more of your work time at the house than any other single work place.

3. Meet your clients at home. Meet our clients in your house as a regular part of the business.

4. Have no other fixed location. Have no other fixed location to perform “substantial administrative or management activities of your trade or business.” If your employer provides you an office at work, it doesn’t pass this test.

what Qualifies?(must be at least one of the following)

© 2013 Artist, INC

© 2013 Artist INC

C 56

make your Out Of Town Travel pay you

what Qualifies?(All FOUR of the following occur)

1. The main purpose of the trip is business, and the majority of the days are workdays

2. You duplicate expenses from back home. The most obvious examples are a hotel room bill or car rental receipt.

3. There is at least one overnight stay or you could not have reasonably returned in a day, i.e., you drove back overnight and arrived home after 3 am.

4. Your physical presence is required to do this work.

© 2013 Artist, INC

© 2013 Artist INC

Tax Bracket

Reduce your

taxes by:

What you’re

actually paying for the $1,000 investment

Immediate return on

your money

15% federal/5% state

$200 $800 25%

25% federal/5% state

$300 $700 42%

make the Government Help Pay for your Retirement

$1,000 IRA Investment

© 2013 Artist, INC

© 2013 Artist INC

budgeting Don’ts! don’t Dictate

don’t Rush

don’t go by what Others Spend

don’t look for Miracles

don’t Nickel-and-Dime it

don’t Overdo the Paperwork

don’t be Inflexible

Adapted from Lewin, Elizabeth S. (1989). Financial Fitness for New Families. New York: Facts on File.

© 2013 Artist INC

small group discussion:weekly two-minute update

Remember: What happens in Vegas stays in Vegas!

Art

Personal

Business

© 2013 Artist INC

Elevator Speech each member will give

their elevator speech to the group

Marketing Checklist

Small Group discussion

© 2013 Artist INC

Action items

Complete: • one year goals

• bring 6 copies of your resume and 6 copies of your artist statement

Suggested:• read: Chapter 2 of The Artist’s

Guide

• read: “Dean Vivian’s 2013-2014 Tax Letter and Update”

• Overhead Worksheet (Artist INC Workbook)

• Pragmatic Pricing Worksheet (Artist INC Workbook)

© 2013 artist inc only put off until tomorrow what you are willing to die having left undone....

Documents

system slide

budget slide

erin mcallister slide

jane booth slide

opening exercise slide

pecha kucha slide

pablo picasso slide

cheryl eve acosta slide