When I first started, I used a paper checkbook register. Sales were entered as deposits, purchases were entered as checks. The running balance told me whether or not I was actually making any money at the end of the week/month/year.
"KISS" - Keep It Simple & Swift. The checkbook register is probably the closest a lot of people get to accounting, but it works. For the eBay seller, it's fast and easy -- both of which make it more likely to be used rather than tossed aside in frustration or because of the monthly fees.
If you're just a casual seller - a few things every now and then, not much organizing & a shoebox for receipts - then this register will help.
If you're more than just casual, stick with the checkbook idea but use one for sales (income) and the other for purchases (expenses). The find a reasonably priced, experience CPA to help you keep your books accurate and your quarter tax payments on track. The mandatory 1099 rule may have been delayed by te IRS for a year, and it may change parameters during that time (if Congress can get back to working for the people instead of this **bleep**-for-tat malarky they've got going now)... but it's going to be implemented at some point and the better records you have, the better chance you have to minimize the additional tax.
When I started getting serious, I hired a CPA. Excellent investment -- when my 2005 Federal tax return was audited, the whole process was enlightening, but at the end of it all I wrote a check to cover the required tax and late fees for a few deductions I couldn't confirm via receipts. All in all, a definite win and it was my CPA who helped me with my recordkeeping needs (what to keep, what to toss, how long to keep it, how to keep it safe, how to classify...) and kept the worst of the troubles away. He had a flat annual fee that included our Federal tax return, x hours of on-site consultations, x hours of phone consultations, and x number of email exchanges.
Checkbook-style register to start... then grow into what you need. You'll know when you need it, and you'll know where your weaknesses are so you can find a solution that not only keeps the number straight, but addresses those weaknesses.
I do have a tendency to get wrapped up in other things lately.....
SixBit is a listing tool that began in 1997 or 98 as one man's code to help his wife sell on eBay. Data was captured via "screen-scraping" and the data was kept in a flat-file (think text file with separators).
Fast forward to today and SixBit has grown mightily - it's now multi-venue (either directly or thru export/import of CSV data files), multi-ID (1,5 or unlimited), multi-user (shared database) and much faster (based on MS-SQL).
Your data is broken down into three main areas: Items (inventory), Listings (pending, posted,closed) and Sales (unpaid, paid, archived). While SB has a sometimes overwhelming level of flexibility, you can still start out with manually entering all the details and work your way into use the various features that will make things easier. There are useful help files (maintained on the SB site to ensure they stay current) and an active user community message board once you're a registered user.
If you like, start out with just one ID and a limited number of 'expanding' features. This is also the cheapest level and can be used with either your only ID or your smallest ID if you have multiples. To begin with, SB will import all your current running listings and create Item records and Listing records for them. You can also request the import of up to 60 days of closed listings (after that, eBay takes them elsewhere).
I'm a big proponent of automation, and not just because I used to create and sell it. Any time I can have my computer keep track of something I really don't want to have to keep track of manually, I'm going to be looking at it closely and if I like it, I'll set it up. SB keeps track of my inventory (items and quantities), my listings, and my sales. It keeps track of my buyers and can show me sales history by buyer or by item. I can use it to send buyer messages (that now will go thru eBay's Message service to hide the buyers actual email address), to reprice inventory, to quickly relist inventory, to look for stale listings and, thru a few steps, refresh them with new listings and no stale history.
All of which means my two elongate selling IDs take me just minutes a day to check and maybe a bit more to handle new paid sales (packslip to pull inventory and stuff in box, with or without custom messaging), print labels if I want (I use ShipWorks thru my employer, SB has different connections), and then manage feedback they way I want it done (have eBay auto-post or use SB to post based on rules you design&use).
I could go on and on, but I'll send you a link to their info pages where you can read a more professionally created overview.
One thing I forgot to mention - SixBit is not, and does not claim to be, a replacement for good record-keeping, and it's definitely not an accounting package. It -will- track your eBay fees, and if you want, it can track your per item cost. You can add a fixed overhead cost to your order numbers if you want, but it's generally easier to just keep track of how much you purchased $$ during the year, how much you paid for deductible expenses, and then work with annual or quarterly totals. Total sales less total fees less total deductible expenses = net taxable income. SixBit can track your sales and your fees - and the numbers should match eBay's numbers if I am remembering correctly. It's not that I don't trust eBay or SixBit's figures -- I just think it's always a good idea if you can prove your numbers with data from more than one source.
krazzykats
·3 years agoGoto softwarename.com - replace with the Sixbit name. (in case rosa doesn't come back right away.
rosachs
·3 years agoWhen I first started, I used a paper checkbook register. Sales were entered as deposits, purchases were entered as checks. The running balance told me whether or not I was actually making any money at the end of the week/month/year.
"KISS" - Keep It Simple & Swift. The checkbook register is probably the closest a lot of people get to accounting, but it works. For the eBay seller, it's fast and easy -- both of which make it more likely to be used rather than tossed aside in frustration or because of the monthly fees.
If you're just a casual seller - a few things every now and then, not much organizing & a shoebox for receipts - then this register will help.
If you're more than just casual, stick with the checkbook idea but use one for sales (income) and the other for purchases (expenses). The find a reasonably priced, experience CPA to help you keep your books accurate and your quarter tax payments on track. The mandatory 1099 rule may have been delayed by te IRS for a year, and it may change parameters during that time (if Congress can get back to working for the people instead of this **bleep**-for-tat malarky they've got going now)... but it's going to be implemented at some point and the better records you have, the better chance you have to minimize the additional tax.
When I started getting serious, I hired a CPA. Excellent investment -- when my 2005 Federal tax return was audited, the whole process was enlightening, but at the end of it all I wrote a check to cover the required tax and late fees for a few deductions I couldn't confirm via receipts. All in all, a definite win and it was my CPA who helped me with my recordkeeping needs (what to keep, what to toss, how long to keep it, how to keep it safe, how to classify...) and kept the worst of the troubles away. He had a flat annual fee that included our Federal tax return, x hours of on-site consultations, x hours of phone consultations, and x number of email exchanges.
Checkbook-style register to start... then grow into what you need. You'll know when you need it, and you'll know where your weaknesses are so you can find a solution that not only keeps the number straight, but addresses those weaknesses.
-Bob.
oldsilverandgold
·3 years agoOK, tell me about SixBit, please. I am at my wits end with Quickbooks online.
rosachs
·3 years agoI do have a tendency to get wrapped up in other things lately.....
SixBit is a listing tool that began in 1997 or 98 as one man's code to help his wife sell on eBay. Data was captured via "screen-scraping" and the data was kept in a flat-file (think text file with separators).
Fast forward to today and SixBit has grown mightily - it's now multi-venue (either directly or thru export/import of CSV data files), multi-ID (1,5 or unlimited), multi-user (shared database) and much faster (based on MS-SQL).
Your data is broken down into three main areas: Items (inventory), Listings (pending, posted,closed) and Sales (unpaid, paid, archived). While SB has a sometimes overwhelming level of flexibility, you can still start out with manually entering all the details and work your way into use the various features that will make things easier. There are useful help files (maintained on the SB site to ensure they stay current) and an active user community message board once you're a registered user.
If you like, start out with just one ID and a limited number of 'expanding' features. This is also the cheapest level and can be used with either your only ID or your smallest ID if you have multiples. To begin with, SB will import all your current running listings and create Item records and Listing records for them. You can also request the import of up to 60 days of closed listings (after that, eBay takes them elsewhere).
I'm a big proponent of automation, and not just because I used to create and sell it. Any time I can have my computer keep track of something I really don't want to have to keep track of manually, I'm going to be looking at it closely and if I like it, I'll set it up. SB keeps track of my inventory (items and quantities), my listings, and my sales. It keeps track of my buyers and can show me sales history by buyer or by item. I can use it to send buyer messages (that now will go thru eBay's Message service to hide the buyers actual email address), to reprice inventory, to quickly relist inventory, to look for stale listings and, thru a few steps, refresh them with new listings and no stale history.
All of which means my two elongate selling IDs take me just minutes a day to check and maybe a bit more to handle new paid sales (packslip to pull inventory and stuff in box, with or without custom messaging), print labels if I want (I use ShipWorks thru my employer, SB has different connections), and then manage feedback they way I want it done (have eBay auto-post or use SB to post based on rules you design&use).
I could go on and on, but I'll send you a link to their info pages where you can read a more professionally created overview.
-Bob.
rosachs
·3 years agoOne thing I forgot to mention - SixBit is not, and does not claim to be, a replacement for good record-keeping, and it's definitely not an accounting package. It -will- track your eBay fees, and if you want, it can track your per item cost. You can add a fixed overhead cost to your order numbers if you want, but it's generally easier to just keep track of how much you purchased $$ during the year, how much you paid for deductible expenses, and then work with annual or quarterly totals. Total sales less total fees less total deductible expenses = net taxable income. SixBit can track your sales and your fees - and the numbers should match eBay's numbers if I am remembering correctly. It's not that I don't trust eBay or SixBit's figures -- I just think it's always a good idea if you can prove your numbers with data from more than one source.
-Bob.