Art galleries are subject to a surprising number of accounting issues, because of the manner in which they operate. In the Accounting for Art Galleries course, we cover the impact of economic nexus on their sales tax reporting requirements, the accounting for consignment sales, how to account for artwork inventory, the types of fixed assets they are most likely to track, how their chart of accounts is structured, the need for cash sale reporting to the Internal Revenue Service, and much more.
Learning Objectives
Upon successful completion of this course, participants will be able to:
Recognize the types of collectors that buy from an art gallery.
Specify financial characteristics of the art gallery business model.
Identify how the economic entity concept may be violated by an art gallery.
Recognize how the economic nexus concept can impact an art gallery.
Identify the most likely inventory method for an art gallery to use.
Recognize the fields normally found in the inventory records of an art gallery.
Identify the main concepts relating to the depreciation of fixed assets.
Identify the accounts in a general ledger that are unique to an art gallery.
Specify the IRS reporting form used to report large cash sales by an art gallery.
Identify the metrics that an art gallery could monitor to enhance its financial results.
Major Topics
Art Gallery Revenue Structure
Art Collectors
Artist relations
The Art Gallery Invoice
sales Tax
Artwork Inventory
Art Gallery Expenses
Financial Statements
Form 8300 Filings
Art Gallery Metrics
