This is my first year to file income tax on my business, Plum Beadacious. My tiny business that provides so much enjoyment has become quite the headache for my husband and me. Thank goodness my husband used to work for H&R Block part time several years ago. He is quite good at doing our taxes with the help of Turbo Tax sofware.
However, he can't do the work without the figures. I have learned the hard way to become much better at keeping meticulous records when I buy my beads and findings, pay my Etsy, eBay and other website fees, and when I sell my jewelry both online and at craft shows. I have all that information, but in all kinds of different places. I gathered the data (over the last few weeks), and gave it to my husband to put into schedule C on our taxes. Whew, what a job!
Now, I started an inventory spreadsheet in Excel for all my purchases and created the formulas to decriment beads as I use them. If I am faithful in using this, my inventory of beads should be all ready on January 1, 2009.
Beaders - Do you have any hints to share on tracking everything for tax day?
I must say that the discipline of pulling all this together has certainly opened my eyes to some of my poor business practices. I surely have not been wise in my purchasing and my pricing. Pricing is another difficult process. I am not going to think about that yet tonight. Figuring out the tax was enough math for one day.
By the way, Etsy has some Storque articles on taxes and on inventory. One is Tax Time Considerations for the Independent. Another is Etsy Seller Inventory Worksheet.