3 Things I’ve learnt from my first business Tax
Hi there,
I’m trying to be more engaging and structured with these blog posts. I’ve never done blogging before so it’s all a learning experience. Don’t worry about these becoming too structured though because I’ll still be treating it much like an artist diary. I’ve assumed so far that no one really reads these - but I checked the page views for the first time and blogs have 41 views! That may just be the blog page…oh well I’m still counting a win.
I’ll get into it:
Be consistent with your receipt system.
I was searching all over for my receipts - my computer files, my google drive, my phone, my physical receipts. It took SOOO long and nearly drove me nuts. I was organised in that I had everything written in an excel spreadsheet (item, date, cost, whether there was a receipt etc.) but then I had to marry receipt to spreadsheet item. I have learnt my lesson. My receipts will go straight into google drive, and I may even make additional folders by month. As they say - keep it simple stupid (KISS).
Naming the receipts was a whole other thing that I fretted over. My instinct was good, I named them by item and price, because I figured the price would never be exactly the same on two receipts (99% of the time) and this would make it easier to find if needed - just search the price. Then I tossed up naming each receipt in order, as in 1,2,3,4 etc, but thankfully after talking to Dylan about it, I decided to scrap that idea. His advice was, ‘Don’t do more work than you have to’. Very good advice and something worth remembering in all areas I think haha.
random image for interest lol.
2. You won’t have earnt very much in your first year.
During this tax year (July 2024 - June 2025) I earnt about $600. I thought it would have been more, but keep in mind I only really started this art business thing from March really. March is the first sale I have down, to the lovely Chrissy and Geoff. So breaking that down its only really 4-5 months. I did make a big sale after the tax period ($300 in July for a commission) so i think next tax year will be a bit bigger. That’s all I can hope for really. Any sales is a huge win and so very encouraging.
This is where its very important to have reasonable expectations AND to be very KIND to yourself. My goals this year are to start my art business and to try everything to get an idea of what works and what I can do long term. These are loose goals because I do work fulltime and I know that starting a business is not for the faint hearted.
So, my advice to you if you are starting your first business and/or doing your first tax - set reasonable goals, be kind to yourself and recognise that you won’t make a profit overall in the first year, or even the second or third. This is easier to do if you have a main job that provides for your living.
3. You can do it all yourself, but going to an agent brings peace of mind.
Or, you can do it all yourself, BUT you dont have to. This is a life long lesson for me. I always think I can figure anything out with enough struggle and stubbornness. It’s a barker thing I think.
Anyway, I had some trouble with my personal tax for the last few years - I know. Basically I owed the ATO (Australian Taxation Office), and I wasnt sure why, and I didnt submit my tax because I was scared and confused and life was hectic blah blag. Anyway, lesson learnt, and going to a great tax agent helped me understand what had happened, so that I could make sure it woudlnt happen again. I should have known all of this I know, but tax isn’t my strong suit. Lessons learnt. Next year will be better. If you’d like to know any more info about any of the above, simply comment below or email me at artbybreige@gmail.com.
Love to you if you’ve read this far :)
Peace,
b.