O - Outright

Outright - Outright.com is an online book-keeping software program that allows artists to track their income and expenses. This software documents spending and income and can be linked to a Paypal account. It will automatically deduct or add money based on Paypal transactions. Spending or income can also be entered manually.

Outright.com is a useful tool for tax season as well. It will tally up individual business expenses and income and divide them into categories used by tax preparers. Doing taxes for a business can be incredibly difficult and this software helps to make it a bit easier by preparing all financial information.

Another great aspect about Outright.com is the fact that it is free to use. Artists simply have to sign up with a username and password and then grant access to a Paypal account. Outright will track expenses as they happen and generate timely reports of earnings or losses.

R - Receipts

Receipts - Receipts are important for both sales records and to present a professional business appearance. Luckily receipts are easy to produce in a couple ways.

When using a knucklebuster (see K) to process credit cards, the receipt is automatically generated with the swipe of the machine. The artist simply needs to input the sales information as well as the expiration date, type of credit card and customer contact information. The sheet then produces a carbon-copy that can be given to the customer and an original receipt that the artist keeps.

When processing a cash transaction, artists can use carbon-copy receipts purchased from a local office store like Kinkos, Office Depot or Staples. They simply need to fill out the sales information, add the tax and provide a total at the bottom. These sheets can then be separated so that both customer and artist can have a copy.

The receipts can be kept in a file box, with a different file for each show. This helps artists keep their sales straight and provides clear, organized records that will help at tax time.

Any receipts from purchases should also be kept and tracked using book-keeping software such as Outright.com (see O). Artists should keep receipts from purchases such as the following:

• Supplies
• Gas for riding to and from art shows
• Application and booth fees
• Etsy fees
• Paypal fees
• Legal or tax services
• Workspace improvements
• Internet (and possibly phone) bills
• Any other related expense

S - Study, Small Business and Self-Employed Tax Center, Square

Study - Artists should continually strive to advance their skills. They might not do it by taking a traditional class, but they can watch tutorials online, read instructional books and even participate in the Etsy labs to learn new techniques. Art business people should also study up on business strategies. Business has to be as important as art in order to make a full-time living with art sales.

Small Business and Self-Employed Tax Center - The small business and self-employed tax center is a page of the IRS website that helps small business owners find all of the necessary tax forms and documents. Artists can register their business and apply for an EIN (Employer Identification Number) that allows them to hire help. Artists can also find important forms for filing their yearly income tax.

Artists who plan on pursuing a full-time art career need to register with both state and federal government agencies to be able to collect sales tax and file income taxes. Many art shows do not allow artists to participate unless they have the required state documents to collect the sales tax. It's also just important to be professional to prevent any future problems with audits.

The small business and self-employed tax center is a wonderful resource for anyone seeking small business tax information at the Federal level. Each state also has sites for small businesses though, and don't neglect viewing that information to be prepared as you start your business.

Square - Square is a service that will process your credit cards through your smart phone. Sign up at http://www.squareup.com/ and they will send you a free card reader. Use the reader with the Square app on your smart phone to process credit cards at shows. You will only need to pay a small credit card processing fee for each transaction, which is much better than paying a monthly fee AND a processing fee, like most credit card processing companies.