Accounting and Inventory

[chuck123wapati]

20 minutes ago, JayEhl said:

I know that many folks would rather keep things simple using paper ledgers and don't want to bother with a computer.  Heck, when I leave my IT job I keep telling myself I don't want to be around a computer, either, but know that will be difficult. 

So, if I may add to the conversation, MS Excel is now in the business of a 'subscription' model, meaning you have to lease the license on a yearly basis as part of their Microsoft Office 365 portfolio of applications... corporate greed knows no bounds, it seems 

Excel hasn't really added any "WOW" features that would be worth an annual subscription, anyway, but if you wanted to use an electronic spreadsheet while avoiding additional expenses,  you could find an older version of Excel on probably an even older computer (who doesn't have an old computer that is hardly being used anymore -- and doesn't need to touch the internet).  Another option is using the Google version called Google Sheets on the chrome browser.  It is safe and secure (as any product on the internet) and would be my goto if I ever decided to launch my business, full time and it is still free.

Just my .035 worth (inflation)

 

 

 

i didn't know that what  a shame. But like you my career with computers started with dos and ended when i retired and i plan on keeping it that way lol. I only use them now for this.

[Northmount]

Don't count up rivets, snaps, dyes, thread and stuff like that.  Put it into a column called expendables and write it off for the year it was purchased in.  On the opposite side, if you wish, charge a shop materials fee on every sale of $5, $10 or what ever.  I'm sure you are already including it in your selling price already, but it would probably make your accountant happier to see it.

For the amount that I do, which is not very much, I buy the materials personally, then for each item sold, I charge $10, $20, etc. per estimated square foot including waste.  And add $5, $10, $15 etc. for the expendables. So at tax time, it becomes a simple matter of income - expenses.  I have lots of leather, but it is all mine, and I don't have to inventory it.

For the small business running out of your home, you can also take a percentage of your utilities, taxes, insurance, mortgage interest, etc. for the percentage of space used.  Don't forget to count hallways and bathroom as part of the business space (since you have to be able to get to your work area).  Refer to your tax regulations and ask your accountant. (If you have one!  Got rid of mine years ago as he provided no benefit to me and never followed through with any suggestions to improve my corporate tax and personal income situations.  Followed his procedure, plus bought the approved software and never went back to him.  Also use the interpretations your taxation department makes available.)

Don't count software and some of your smaller computer devices as capital as they are replaced frequently.  Write them off as you buy them.  Higher priced items that you will use for a few years, depreciate them as allowed, then junk them and write off the remaining depreciated value.

[Handstitched]

17 hours ago, JayEhl said:

(who doesn't have an old computer that is hardly being used anymore -- and doesn't need to touch the internet)

Me  Don't laugh . What do you think I'm using typing this ? 

HS