Making Money - Page 4

  • Get someone else to do your bookkeeping. Maybe not the day to day stuff, but get an accountant to do your taxes and advise you how to handle things like sales tax and quarterly filings. Keep everything above board. Sure, you can do a lot of selling without ever reporting to the IRS, but someday someone's going to see more money coming in than going out and they're going to want to know why. That's another beauty of having an accountant: if you're audited, odds are you don't have to face it alone.

  • Accounting Software. Your accountant may insist on it, and even if he doesn't it'll make your collective lives easier. The two biggies are Quickbooks and Peachtree. Neither is really designed for any kind of inventory tracking, but either will do your point of sale stuff okay plus tracking expenses and income, which are the important parts anyway. Which version you get is up to you, but check with your accountant; he may have a preference.

    Quickbooks is the defacto standard, but it has one feature working against it that I absolutely despise: you have no choice but to upgrade when they tell you, OR if you upgrade your operating system. The interface is directly tied to Internet Explorer in Windows, so if you're running Windows 7 and upgrade to Windows 10, you must ALSO upgrade Quickbooks. This may or may not be free.

    A better idea might be to look at a cloud-based solution. Wave is free (as of this writing) and while I haven't personally tried it, it looks very promising.

    When you do get your software, use it. Record everything you can think of about a transaction, because a year down the road when a customer says "Remember last time when I ordered from you? What did I get? I really want another but I can't remember all the details..." you have to be able to pull that up. On the item line, writing "Shirt, [email protected]" isn't enough. "Shirt; green; large; pointy collar; customer has broad shoulders - leave shrug room! [email protected]" tells you enough to duplicate this order.

    Keep everything above board.

     

     

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