Better Bookkeeping Made Easy

 

 

Guest Post: Don't Make Bookkeeping Harder Than It Has To Be

 

 

Hey there. Today my etsy friend Kate, who some of you may know from StoryTellers Vintage and Foothill Fibers 'N Photo is sharing some of her no-nonsense expertise with us.

 

You see, I'm going to let you in on a little secrete. Kate is not just an expert vintageer, hunter of all-things-that-have-a-story-to-be-told, as well as a fine knitter and crocheter, she's also a CPA.

 

Cue scary movie music.................

 

I know some of your are cringing at those three letters, shrinking in a corner all intimidated, but you need to stop.

 

If you're running a business or even a household, Kate has some very straightforward tips about bookkeeping that will help you when it's time to prepare things for the tax man.

 

Trust me. You can handle these.

 

It's 7 Quick Steps.

 

What's so intimidating about that?

 

 

Here's Kate.....

 

I know, I know, who wants to think about record and bookkeeping for your business when there’s creating and promoting to be done.  Most people starting handmade (or vintage) businesses don’t think about the accounting necessary for a business, but this part is truly vital to your overall success.  Keeping accurate and timely records enables you to make the right decisions that are best for your business in both the short and long-run.

Hi, I’m Kate, a CPA (Certified Public Accountant) and while you may have seen me around ‘the Muse’ before, you’ll also find me managing my two Etsy shops, Foothill Fibers N’ Photo and Story Tellers Vintage.  Having a background in business and administration has helped tremendously when planning and executing my business goals and I’m happy to share some of my key record keeping tips with you.

Quick Reference Record Keeping Tips

1. Find an inventory system that works for YOU.  If you’re not keeping track of raw materials and items you sell, how will you know if you’re making a profit?  I use spreadsheets to track my yarn and vintage treasures, but if you have more complex materials, you may want to look for inventory tracking software specific to your art of expertise.

 

2. Keep those receipts!  Even if you just put them in a shoebox or basket.  Chances are you will not remember the time you bought mailing envelope at the grocery store that one time.  At a later date, scanning copies onto your computer can also allow you to recycle the paper and still have your records.

 

3. Use your receipts to categorize and tally up your expenses.  Most accountants use Quickbooks, but there are many other programs available, some even for free, like Outright.com that allow you to generate Profit and Loss reports so you know where your business stands.  Opting for an easier option?  Organize your receipts and total them in a spreadsheet or log book.

 

4. Stay up to date.  I know it’s a daunting process, but however you record your information, I recommend never being more than a month behind of recording data.  Seeing how your business has done in the past can help you decide steps to take in the future.

 

5. Keep a log of your business miles driven.  If your home is your primary place of business, all those trips to the yarn store or post office count as business expenses (which is important come tax time!)  You can keep a notebook in your car or use a spreadsheet.  Either way, make sure to note the date, place you travelled to, and the total miles driven.

 

6. Purchases of equipment should be tracked separately from your day to day expenses.  These, normally larger priced) items, such as computers, cameras, etc. are referred to as ‘capital assets’ and their cost must be allocated over its useful life. 

 

7. Working from your home office?  Keep receipts for your home expenses, such as utilities, rent, repairs and office supplies and furniture.  A portion of these expenses might be deductible for tax purposes.

I’m hoping these tips can help keep your business organized and ready for any opportunity that arises during your small business journey.  Keeping in contact with your tax accountant throughout the year, can also help you plan for success.  Any specific tax questions or concerns should be directed to your accountant.  There are many accounting and tax issues that vary from business to business.  Make sure you’re making the right choices for yours.

 

Pam here again. There, now was that so bad?

 

To recap, here's a quick reference guide that you can print and hang on your above your desk, just to make sure you stay on track.

 

 

Many thanks to Kate for sharing her time and her knowledge. 

 

 

Wicked Windy 

 

So as I told you, we've gone from -14F last week to.....are you ready for this............above 60 yesterday! Warmer than they even predicted. Last night a nasty wind blew in, which swept the fog away. Of course, with windy often comes damage and some schools were closed in Massachusetts today because of wind damage and outages.

 

 

Speaking of damage and outages, we lost a tree along our back stone wall during the night and we've had some flickering of power today.  Which means the computer shuts down and I have to wait for it to power back up. It's a practice in patience.  We also now have a lot of wood for Gar to take the chain saw to......here's to free fuel for the woodstove.

 

In case you were wondering, the tree fell backwards into the forest, and yes, we both heard it. Gar said he heard 'something' and so did I, but it didn't wake me up. It just became incorporated into my dream about trees falling onto our pool.  Good thing that part was just a dream.

 

So at least we've answered that age old question once and for all.

 

Ciao for now,

 

 

 

Things I Found After the Party

Gems, Giggles & Geramiums, Oh My

Once again, what a fabulous party. The things the guests brought this time around, are no different than any of the link parties before. Awesome stuff people. Awesome.

My etsy friend and Treasury Island teammate Marci has a wonderful jewelry shop called 3Pearls. You should see some of her crocheted bead bracelets (how do you do that by the way? want to do a tutorial Marci??). That said, although she brought one of her crocheted lovelies to the party, that's not what caught my eye. When I popped by her shop again, I saw this beautiful tourmaline necklace. It's a favorite for obvious reasons.

via 3Pearls

Another one of my etsy friends and another etsy Treasury Island teammate, Kate- aka Miss Vintage, owns Storytellers Vintage.  She really finds some of the best stuff. Like this backpack. Oh the stories it could tell. 

via storytellersvintage

Classic.

via storytellersvintage

You know what's always been really fun about the link party for me? I get to see some familiar faces, but also make new friends. Here I was, making my way around the room when I ran into Giggles and Toots. Well, right off - LOVE the name. Toots is a thing in my family. We'll have to blame it on my Dad. He calls us toots. So I've come to call my nieces toots. In fact two of my nieces named their turtle Toots because of it. See why I love the name? Back to the party. Look what I found when I got to know Giggles and Toots a little better.

Cute sleeptime owl. What kid wouldn't want to rest their head on this pillow at night?

 

via giggles and toots

Or how about sweet dreams? This chenille this pillow is made of looks SO soft!

via giggles and toots

If you want to wake up your senses, then how about a little stroll through a perfectly wonderful Spring greenhouse thanks to Sweet Posy Dreams.

Lynette and I are obviously of the same thinking......I always use Geraniums in my window boxes and in my backstoop planter.  Love 'em and they shout Memorial Day to me, mostly because that's when I'm usually planting them.

The excitement of Spring. Something new each day. Scratch that. The excitement of a new house! Woohoo! So happy to find out that Paige at Little Nostalgia and her husband have found a new home. Moving from their condo has been on their list, but finding the right home in their budget seemed daunting. Now they can check it off their list. Another thing I love about blogging, is you get to share in these wonderful moments.  The bedroom redo that Paige was planning is now officially ON HOLD, for the best kind of reason.  Congratulations Paige!

via little nostalgia

I really enjoy these get togethers, exploring your blogs, your stores and getting know you all a little better. I hope you enjoy them too.

Elle Moss Photo Challenge

I missed submitting in time for the 'Into the Sun' challenge, but here's my entry/ies (I always find it hard to choose) for you guys to see. A beautiful day at the beach. In January no less.

Today's Elle Moss Photo Challenge subject: Three Things.

G-man just looked out the window and said, "It's lashing."  A very wet day here, for now at least. Hoping it clears up a little bit sooner than they expect. Guess we have to have the rainy days to make the sunny days that much better.

Enjoy the day, whatever it is doing, in your corner of the world and we'll do the same here.  What is it dong in your corner of the world? Is the sun shining or do you have your wellies on?  What's on your agenda for the day? Ours includes inventory for Lia Artisan Concrete Designs, and the projects on my desk for Speakeasy include bumper sticker and t-shirt design, ad campaign planning and bookwork.

Ciao for now,