Table of Contents
Accounting for Art Galleries1
| Introduction | 1 |
| Art Gallery Revenue Structure | 1 |
| Art Gallery Competitors | 1 |
| Art Gallery Marketing Principles | 1 |
| Art Collectors | 2 |
| Art Gallery Operations | 3 |
| Artist Relations | 3 |
| The Secondary Market | 5 |
| The Economic Entity Principle | 5 |
| Journal Entry Overview | 5 |
| Sources of Revenue | 6 |
| The Art Gallery Invoice | 8 |
| Sales Taxes | 9 |
| Sales Tax Accounting | 9 |
| Sales Tax Nexus | 10 |
| Tax Remittances Required Under Nexus | 10 |
| Nexus Avoidance | 10 |
| Economic Nexus | 10 |
| The Accounts Receivable Aging Report | 13 |
| Artwork Inventory | 14 |
| Art Gallery Expenses | 17 |
| Artwork Contributions | 19 |
| Art Gallery Fixed Assets | 20 |
| Art Gallery Payables | 22 |
| The Chart of Accounts | 24 |
| Financial Statements | 27 |
| Income Statement | 27 |
| Balance Sheet | 29 |
| Statement of Cash Flows | 30 |
| Form 8300 Filings | 31 |
| Art Gallery Metrics | 33 |
| Art Gallery Best Practices | 33 |
| Summary | 34 |
| Review Questions | 35 |
Answers to Review Questions36
Glossary38
Index40
Course Details
Author: Steven M. Bragg, CPA
Steven Bragg, CPA, has been the chief financial officer or controller of four companies, as well as a consulting manager at Ernst & Young. He received a master’s degree in finance from Bentley College, an MBA from Babson College, and a Bachelor’s degree in Economics from the University of Maine. He has been a two-time president of the Colorado Mountain Club, and is an avid alpine skier, mountain biker, and certified master diver. Mr. Bragg resides in Centennial, Colorado. He has written more than 300 books and courses, including New Controller Guidebook, GAAP Guidebook, and Payroll Management.
Publication/Revision Date: 10/9/2026
Course Exam Questions (online): 10 (multiple-choice)
Program Delivery Method: NASBA QAS Self-Study
Available Formats of Course Text: PDF or PDF plus printed copy sent in the mail
Course Level, Prerequisites, and Advance Preparation Requirements
| License | Course Level | Prerequisites | Advance Preparation Requirements |
|---|
| CPA | Overview | None | None |
* This program is appropriate for professionals at all organizational levels.
Sponsor ID Numbers
National Registry of CPE Sponsors ID: 107615
State CPA Board Sponsor ID Numbers (where applicable)
Florida Division of Certified Public Accounting: 0004761
Hawaii Board of Public Accountancy: 14003
New York State Board for Public Accountancy: 002146
Ohio Accountancy Board: CPE .51 PSR
Pennsylvania State Board of Accountancy: PX178025
Texas State Board of Public Accountancy: 009349
Learning Objectives
As a result of studying the course material, you should be able to meet the objectives listed below:
- 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.
