Setting Up A New Shop

[alb]

Hi All,

I purchased my shop in September from a long time saddle and boot maker who was self taught and had a one person shop. He is still working with me and teaching me the trade.

So far I have done very basic accounting via paper and pencil - basically just a list of income from repairs/sales and expenses categorized into operating expenses and materials. I then create simple monthly income/expense reports.

I've decided to purchase Quickbooks 2010 Pro and automate the process.

I do lots of saddle repairs and some custom leather jobs, both of which are billed for materials (taxed) and labor (untaxed). I do not purchase items for straight resale.

I have not yet done so, but plan to also create a few standard items for sale on a website, with a fixed price per item.

Right now I'm trying to figure out how to set up all the accounts and also what to do regarding inventory. I've never owned a business before and this is a bit of a challenge....

I went to see an accountant a couple of days ago and I think I understand their requirements. I don't necessarily have to do an inventory but I'm trying to figure out a good system to keep track of things and easily see how various things are selling. Also, while some of this work is stuff I've done enough times to feel confident about bidding and charging a fixed hourly rate, I am still keeping close track of other jobs that are taking me longer to do because of my inexperience.

For example, I'm pretty confident in relining skirts. I know what I'm doing and while I'm not the fastest person out there, I think the time it takes is pretty reasonable.

Doing horn wrap and caps is another matter. Right now I'd say I'm spending probably two and a half times as long as it will when I have more experience. So the hourly rate varies depending on how experienced I am in that particular repair.

For the most part I am charging overall what I think is a reasonable amount, calculating the cost of materials and including a markup for those, then backing out the labor amount. When it's something I'm not very experienced doing and I know it's taken me a lot longer to do because of that, my hourly rate is *very* low, but I don't show it on the ticket. I just show the overall labor charge. How have others handled this when first starting out?

What system works for you????

I would really appreciate hearing how others have their accounting set up, how you handle inventory and what you include on invoices.

Also, what kind of markup do you charge for materials?

What info do you find helpful to keep track of???

Thanks in advance....

Feel free to e-mail me offlist if you'd prefer.

Thank you,

Ann