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Accounting Software For A Newbie
I opened a store a few months ago and it's going well. Up until now, I've been tracking each individual sale using a spreadsheet I found, just to make sure everything is going as planned and I'm actually making a profit from it. I've gotten to the point where I feel like it no longer makes sense to do it this way and that I should just be tracking monthly data instead of each individual sale. Every YouTube video on the topic clearly mentions the need (or at least the convenience) for accounting software for their store. I wanted to continue using my spreadsheet for the remainder of this month and during the holidays, figure out what software to go with for the new year. Unfortunately, the one everyone kept mentioning (GoDaddy Bookkeeping) no longer exists and before it made its exit, apparently was pointing people to turn to Quicken. I've heard a lot of people say to stay away from Quicken, so I have decided to try something else. But what?
The current programs I'm considering are: Zoho, Sage, and Xero. I've read that a lot of eBay sellers like to use A2X, although I have no idea what it is. Just that Xero integrates well with it. I have no idea what any of them are, to be honest. Pros and Cons. If someone could recommend a good website or YouTube video that breaks down the differences between them, that would be great.
This is all completely new territory for me. I'm not familiar with accounting software at all. I'm not familiar with accounting at all. What I'm looking for, is software that will essentially do for me what I'm already doing on my spreadsheet. Date of sale, item description, item numbers, ebay fees, transaction fees, gross sales, shipping costs, cost of the items, profit per item, and overall profit.
One final thought. The costs of my items is beginning to vary and it's going to to become difficult going forward, to remember what I paid for each item at the point of sale. Is there a way to enter this info into ebay (or the accounting software) at the time of listing the item? It was easy to keep up with when I started 3 months ago and every item cost the same.
Sorry if this sounds very elementary to some of you. This is not something I had ever really planned to get into, but it's going well and I'm enjoying it, so any advice would be appreciated.
kh-cathy
·1 year agoHi everyone,
Due to the age of this thread, it has been closed to further replies. Please feel free to start a new thread if you wish to continue to discuss this topic.
Thank you for understanding.
caldreamer
·3 years agoEBAY has reports that track EBAY sales & EBAY fees. Go to PAYMENTS, REPORT, TRANSACTION REPORT (enter time period). I have to warn you though....it is very difficult to understand because report is about 40 columns wide (gives you more information than you need).
You need to create your own spreadsheet to track your "cost of goods, mileage, office supplies" and other expenses. Because you acquire many things at yard sales you need to create list showing (date your purchased item, description of item & amount you paid) and keep as proof for IRS. You should also keep "mileage log" (date/destination/miles) to prove your mileage. Also keep receipts for all office/packing materials.
You also need to create spreadsheet for all "inventory" that you acquire. You need to show "date of purchase, cost you paid for merchandise, description of item, date sold). Assign a Inventory# to all items you have to sell and when you sell that item (enter date sold & deduct cost of goods). You keep a running total (year after year) of all inventory bought & sold. IRS requires you to show "beginning inventory Jan. 1, 2022" (total cost of goods on hand) and also show "ending inventory Dec. 31, 2022" (total inventory on hand).
Jan. 1 - BEGINNING INVENTORY on hand $20,000 (your cost of goods)
COST OF GOODS (items sold 2022) -5,000
Dec. 31 - ENDING INVENTORY 15,000
You report "gross sales" as shown on 1099 to IRS. When you file income taxes as a "business" you can deduct business expenses (EBAY fees, costs of goods, mileage, office supplies, shipping cost to send items to your customer, customer returns, etc). You pay income taxes on the "net amount" after all deductions.
jayneair2003
·2 years agoMy dilemma is I have 1000s of items to sell and I'm ready to start listing but I have purchased only about half of the items at VERY low cost and the rest is my own property or has been given to me. I have no idea what my beginning inventory would amount to and would like to know how to find out how to calculate it so that I can have a beginning balance for my inventory/COG. I have the receipts for the items I have purchased. I'm going to be using the Accrual Method for inventory and bookkeeping and I'll be using an online reseller bookkeeping/accounting software.
I would greatly appreciate any input as to where to begin. Thanks so much.
jayneair
onefootflipper2
·3 years agoItem by item records is the exact wrong way to do it particularly for a used item seller / garage sale picker. As is accrual accounting which is what you seem to be using.
You see Youtube people mention accounting software because they are getting paid to do so.
I have higher sales volume than most of the Youtube sellers that I watch and I see no need at all for any accounting software more basic than a free spreadsheet program.
You want to be doing cash accounting on schedule C, where the item or lot of items is "written off" at the time of purchase, not at the time of sale.
You document your own cash purchases, the IRS does not expect cash register receipts or invoices to be very common for people in our sort of business.
jessilee001
·1 year agoI'm doing my best to wrap my head around bookkeeping and taxes as I transition from a hobby to a business. I’ve realized that bookkeeping is something I have to learn, but catching up on past tax filings feels overwhelming—everyone makes it seem so complicated.
I've been stressing over how I could possibly go back and track every sale with faded, wrinkled receipts (if I even have them), along with dates, miles driven, and all the other details. There has to be a simpler way, but right now, I feel like I’m just running in circles.
Your reply made it seem black and white, so I’m thinking my thought process of understanding has hope—I’m just missing the details. Like I have bits and pieces of the equation, but I’m still missing some numbers to justify how I got to the solution, which basically amounts to: I’m barely getting by—just trying to live an honest and righteous life—so the last thing I need is to be knocked back down by owing Uncle Sam for selling used junk just to survive.
I’d love to learn more about your process for tracking everything.