Inventory, bookkeeping and business success topics for makers.
As a handmade seller, one of the first things to realise is that you are not just a retailer of your goods - you are also a manufacturer of them. Why does this matter? Well for starters, it changes everything about the way you need to report your end of year revenue and expenses to the IRS.
The IRS and GAAP (Generally Accepted Accounting Principles) rules both state that you have the choice to either count your complete inventory on an annual basis once a year or maintain a perpetual (constantly counting) counting system. So, which method of tracking is generally best for a handmade business?
Etsy recently announced a partnership with Intuit that provides their Self Employed version of their popular Quickbooks package for a special yearly discounted rate. While on the surface this announcement sounds like a fantastic opportunity for Etsy sellers it has a number of issues from a tax and bookkeeping perspective .
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