Receipts

[bflipped]

Does anyone use your ebay only bank account meticulously used and kept, for tax receipts of proof of expenses and profits when you file your taxes? I am meeting with my accountant in a couple of weeks and will ask her if this can be done but am feeling impatient and want to know now if it could be an option. It would totally eliminate the part of business that I do not enjoy.

[dq3141]

Do you pay for postage from your bank account?

How will you account for things such as mileage?

[katzrul15]

You should have "repeatables" (store fees, etc) that you have each month?

We have warehouse fees, etc that are.  However, we track all expenses each month.  We use 1 credit card only for all business expenses and Amex summarizes everything for us each month, quarter and year end.  There will be other items, not on your bank account that your CPA/accountant should be asking you for.  Good luck!

[7606dennis]

I'm not quite understanding you, OP.  Bookkeeping is an important part of operating a business.  The paperwork such as invoices & receipts are definitely something that your accountant will need in preparing your tax return.  Unfortunately, although most people are not fond of the bookkeeping requirements of business, there is no real way to eliminate them.  Unless, of course, you have a bookkeeping department to handle such things.  However, that doesn't eliminate anything but the boss having to deal with it.     

[chapeau-noir]

@bflipped  The eBay bank account will only track those transactions handled by eBay - overall revenue, fees, shipping (if you use eBay labels exclusively). 

Everything else, unless also transacted through that eBay bank account, will still have to be accounted for (mileage, supplies, inventory, etc.). If you use your eBay bank account exclusively for all expenses related to selling, then it will be more accurate.  You'll still have to track mileage and anything else not conducted through that account.

[chapeau-noir]

I should say that I use one bank account for pretty much everything (revenue from four sites and related expenses) so I understand this method of bookkeeping.  It basically helps to have most of your records in one place.  I do my own taxes.

[caldreamer]

Using your bank account exclusively for EBAY sales won't help (that only shows NET amount that EBAY deposited into your account).   You need to provide your accountant with GROSS sales, EBAY fees, shipping costs, office supplies, mileage, cost of goods sold, returned merchandise, etc.  

Unfortunately, there is a lot of bookkeeping involved in being a seller. 

[dbfolks166mt]

     As others mentioned the bank account information is of little assistance for tax purposes. I use the eBay reports to pull the shipping cost, FVF's, International fees, etc. to total up the eBay expenses then combine those with the COGS, POV, packing materials and other expenses. 

[slippinjimmy · Accepted solution]

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@dbfolks166mt wrote:

     As others mentioned the bank account information is of little assistance for tax purposes.

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It's useful when you have an audit especially if the bank account is used exclusively for business use and not mixed up with a giant pile of personal transactions.

One of the first things an auditor will want to see is your bank records to establish that the amount you reported is in line with the activity in your bank account(s).

[lacemaker3]

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@bflipped wrote:

Does anyone use your ebay only bank account meticulously used and kept, for tax receipts of proof of expenses and profits when you file your taxes? I am meeting with my accountant in a couple of weeks and will ask her if this can be done but am feeling impatient and want to know now if it could be an option. It would totally eliminate the part of business that I do not enjoy.

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@bflipped ,

Well, uhh, like, no. 

Keeping complete and accurate records, is, like, kinda part of being a business, and, like, kinda somthing you need to do to behave like a business, like, ya know.

[dbfolks166mt]

     For an audit quite possibly for preparation not so much. Been through a couple of audits and was only asked for bank records once. They were more interested in the expense receipts and the deductions. The 1099's and W-2's had the income information. 

[luckythewinner]

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@bflipped wrote:

Does anyone use your ebay only bank account meticulously used and kept, for tax receipts of proof of expenses and profits when you file your taxes? I am meeting with my accountant in a couple of weeks and will ask her if this can be done but am feeling impatient and want to know now if it could be an option. It would totally eliminate the part of business that I do not enjoy.

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I'm not sure what you are asking. 

I think you are asking this: 

"If I have a bank account that I use only for eBay, would the bank account records be sufficient for doing my taxes?"

For a seller filing taxes in the USA, absolutely not.