At Bench, we understand the unique bookkeeping needs of art appraisers. We promise to provide regular updates regarding your financials. Have urgent inquiries that just can't be put on hold? Rest assured, our team will get back to you within one business day or even sooner.
Our platform empowers you to streamline data inputs from top appraisal software, minimizing common errors. We collaborate with key industry players such as ValueMyStuff, Artprice, and Artnet—ensuring your financial records are consistently precise.
Say farewell to mountains of documentation and hours spent on manual logging—we automate entries directly from connected accounts. Gain insights from a single, central dashboard enabling you to effortlessly grasp the financial status of your art appraisal business, guiding you in making strategic decisions.
DR. BUKKY KOLAWOLE
A bookkeeper can play a significant role in managing the finances involved in art appraisals. They can help in maintaining all the essential financial records, including invoices for appraisals done, payment receipts and other transaction details. They also ensure that all financial transactions for the art appraisal business are accurately recorded and organised for tax purposes and financial analysis. With their expertise, bookkeepers can also assist in financial planning and budgeting, helping art appraisers make informed decisions about the future of their business. This financial clarity allows art appraisers to focus on their core job and grow their business.
Art appraisers require unique accounting considerations due to the unpredictable and fluctuating nature of the art market. They must manage and track specific financial aspects such as valuation of artworks, commission management, auction-related financial transactions, and currency exchanges for international transactions.
Additionally, art appraisers often deal with special tax implications related to the sale, purchase or donation of artworks. Other considerations include maintaining confidentiality of client information, accounting for inventory, and documenting for insurance purposes. As such, engaging a bookkeeper with industry-specific experience can provide specialised attention to these unique aspects.
In terms of bookkeeping for artworks, the process is quite niche and involves specialised skills. Firstly, upon acquiring artwork, the cost is usually recorded as an asset. This cost would include the purchase price of the artwork as well as any additional costs necessary to get the artwork display-ready such as framing, restoration, etc.
The artwork remains an asset on your balance sheet until it is sold. The original cost is held constant on your books until a sale happens, regardless of changes in the artwork's market value over time. This approach is referred to as the "cost method" of accounting.
When an artwork is sold, it is removed from the asset category on the balance sheet, the revenue from the sale is recorded as income, and the difference between the sale price and cost price is posted as gain (if the artwork is sold for more than its cost) or loss (if sold for less than its cost) on your income statement.
Valuing artwork for sales purposes is a subjective process and typically relies on appraisals from experts who assess numerous factors, such as the artist's reputation, the artwork's condition, market trends, etc.
It is also important to note that tracking artwork sales requires maintaining comprehensive records, including documentation of the initial cost and subsequent expenses, expert appraisals, sale prices, and buyer information.
Given the complexities of tracking and recording artwork sales and valuations, many professionals choose to work with a bookkeeper who is familiar with the intricacies of the art industry.
Nope! All bookkeeping is completed in-house.
Your bookkeeper will be your main point of contact, but at times you might hear from another member of your team. This is usually when your bookkeeper goes on vacation, is sick, or otherwise unavailable.
We handle the bookkeeping for you but sometimes we’ll need your input, especially at year-end. On average, expect to spend 15 minutes each month answering questions for your bookkeeper, or uploading supporting docs.