My business is pretty simple so far. Since we moved this year & shut the shops down for nearly 6 months out of the year, I had a lot of investment but little profit. Translation? I won't be paying any taxes on the shops since I'm so far in the red. :) I'm thankful the numbers don't matter too much to us since we don't rely on my etsy businesses at all.
Tax Categories Most Etsy Sellers Keep Track Of
1. Car Mileage: going to get supplies? going to the post office? Keep track of mileage!
2. Legal/Professional Services/Rent: Yep, this means the accountant for me! Servicing my machines would count, too. Did you know you can write off part of your mortgage or rent if you use a space ONLY for your business?
3. Office Expenses: Paper, copying, printer cartridges, etc.
4. Supplies: For me? Fabric, fabric, fabric. Thread...more fabric. Velcro. Fabric.
5. Travel Expenses: I'm still looking for a need to go to Hawaii to purchase fabric or something, lol.
6. Meals & Entertainment: If work related! Please don't try to write off your Netflix subscription, even if it does ease the boredom of working late into the night. :)
7. Postage: Easy enough to understand that one as an online seller!
The best advice I got recently was from Ashley of LilBlueBoo's Business Posts is to set a date each month and catch up on paperwork. It makes sense: don't get behind! I've set two dates a month because that way I can work on it in smaller batches. Last year I tried a spreadsheet approach but I realize now I'm too old school for that. It's a notebook for me, all the way!
How do I store receipts? A new shoebox/box each year. It's accountant approved!
I enter the receipts in my notebook so the data is already collected, I just need the receipts if I ever get audited.
I started to enter my data but then I realized I
First I grabbed some supplies. I've had this paper stack for about 5 years & it's still handy!
Cutting the paper to fit my box, I ended up using packing tape
since I lack the patience to wait for glue to dry.
My helper was more than happy to use up my leftover paper
and extra letters I had cut. She loves to glue letters onto paper!
The finished notebook pic is at the beginning of this post. Here's the finished receipt collecting box. I love it. Now if I could only get the box & notebook to fill themselves..... :)