Let’s talk about the “B” word.
Not that “B” word… Get your head out of the gutter.
The word I’m talking about is BOOKKEEPING. Unless you’re one of those awesome nerds (like me) who just love math and money, it’s the vain of your existence. It’s tedious, it’s complicated, and it’s the thing that helps you lose money to taxes.
If you don’t keep track of your expenses and books throughout the year, you will be crying come tax season. So much gets factored into taxes for small product-based businesses. If you aren’t adding to your lists every month, if not every week, you will end up spending a big chunk of money hiring someone to help you sort it out.
Don’t be that person. Keep up with it now, so that you can coast into tax season with a smile on your face instead of etching in a few more frown lines.
Maintaining your books and submitting your taxes is not pleasant, but absolutely necessary. You know, to be contributing members of society and stuff. But what on earth do you need to keep track of your books? I’ll be honest. It’s a lot. But don’t worry, this is my jam. I’ve got you covered.
So, without further ado, here is your complete list of expenses that you should be tracking for your handmade product business:
Now take a deep breath. It feels like a lot, but it’s pretty easy to keep up with once you create a procedure. Determine all of the items that you need to include that are specific to your business. Create a checklist, make your folders, and prep your spreadsheets. Get prepared to start the new year with a bookkeeping system in place.
Tax season doesn’t have to be stressful!