Isn’t this the part we all love?
Who doesn’t like to see money come in? For artists, it’s a validation that someone else enjoys our creation enough to want to own it, enough to want to pay us for the work we did.
Artists have many ways to make money. There are the obvious product sales, but artists can also teach others or speak to a group. We can license our art (or at least put it on other products to see if it’s well received and has potential of further licensing). We can write ebooks about art which in turn can bring income. Having multiple streams of income is smart for any business. I won’t expand on that here and now because there are many better books and articles referencing how to build multiple streams and residual income.
While you may use different classifications to keep track of how you receive the money (product sales, print sales, book sales, etc.), it’s very important to make sure you’re recording all of your income.
The biggest and hardest fact to remember is that this is not your money. This is your business’ money. Aw, you didn’t really want to hear that, did you? But this is why it’s vital that you have a business checking account separate from your business. That way when you do make a transfer or write a check to yourself, it becomes a more conscious decision that you are taking money out of your business. It’s a nice way to feel the abundance, that you’ve been successful. Even if it’s only $20 so you can go see a well-earned movie without hurting your personal budget.
This decision will also remind you that your business has other things to pay. We’ll talk about expenses in the next bookkeeping post.