So you’ve got the creative gene flowing through you, a natural knack for organic ideas and curating beautiful work for clients - but how confident are you when it comes to running your actual business? Unfortunately, you can’t just breeze by with your talent alone, so let’s chat about some really simple and easy things that you can do to get organized and comfortable running your biz like a boss.
First things first: Give your business a name and register it to your state, province, or whatever applies to the area where you live. There are a lot of variables here, so do some research on what type of business is best for you and what the requirements are to register it. Setting up a separate entity for your business will make it easier to keep track of your finances and can offer certain protections to you as a creator. It’s common to have to renew your business registration each year as well, but again, do some digging to know. Knowledge is power.
Next up: Spreadsheets. They are going to be your best friend. But don’t worry, you don’t need to have a master’s degree in Excel to use them effectively. If you have a Google account, Google Sheets is a free and easy option for this. If you want to be your accountant’s favorite client, stay up to date on a spreadsheet that tracks your purchases/expenses and your income from project to project. It will not only help you out when it’s tax time, but it will also give you exact numbers at a glance of your net income to date.
I know what you’re thinking, where do I start? It can be overwhelming to just dive in and get it all set up. And that’s where we come in. *Applause*. Here is a simple and easy template that you can customize to fit your needs. Rest easy knowing that every little thing is tracked. Remember to update it often, it’s much easier to maintain in small chunks!
Click on the image to create your own copy of the P&L Template!
Use the top sheet to track your expenses and profits, then click to the second tab to see the spreadsheet work its math magic. The more detailed you can be on your records, the easier life will be for you, and you can easily amend the columns to fit the needs of your business. You’d be surprised how hard it is to remember details from 10 months ago when all you wrote down was “supplies. $100”. When did you buy them? What were the specific items? What client project was it for? Although it may not always be critical information, it’s better to be over-detailed than under. The spreadsheet template will help you get into the groove of bookkeeping for your business.
Pro Tip: Do a good job (like, a really good job) of documenting all of your expenses because you may be able to write them off when it comes time to do your business taxes. Always be sure to check with your accountant so that you’re not guessing what may or may not qualify as a write-off. Using an accountant, if you’re able to, is the best way to ensure your business finances are running at max efficiency.
Last and certainly not least: Open a separate bank account for your business. Why, you may be wondering? There are a few simple reasons for this. It keeps your personal account and your business account separate and clean, for one. The best way to avoid having to sift through your finances to determine which ones were personal and which ones were business come January 1st is by keeping them separate in the first place. It just makes life easier - that’s the simple answer!
And just like that, in a few easy steps, you’re ahead of the game and well on your way to success not only with your creative endeavors but with running your business like a pro. Stay organized out there!
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Note From Tongal: "Turn Your Creative Side Hustle Into An Actual Business" is part of a series of Tongal Community-written blog posts that were originally sourced in the Tongal Blog Open Call Project. The views and opinions expressed in this article are those of the author(s) and do not necessarily reflect the official policy or position of Tongal. Read more Tongal Community-written posts here and then Pitch us a topic you'd like to write about for the Tongal Blog!
