Posted in Inventory, New Year, Sourcing, Taxes

Inventory is Complete!

It looks nothing like the picture above, but it no longer looks like an episode of Hoarders, either.

It took 8 hours to empty all of the boxes, sort, change the labels on the boxes, store them in another room and binge watch THE OA.

I expected to find clothing I had forgotten, clothing that had defects and some mystery pieces.  None of that happened.  I am not sure if that means a have a telepathic memory, or I just got lucky.

What I do have is peace of mind and efficiency, which means a lot when growing this business.  I am constantly trying to find extra time, because I keep running out of it.

As I sit here this with my cup of tea and my Maine Coon kitty in my lap, I have had 2 sales.  It is a wonderful feeling because I know exactly where the items are!

Packaging sales and watching THE OA?  Thank you very much, I believe I will!

 

#JewelsForThePauper

Where everything is fit for a Queen

But

Priced for a Pauper.

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Posted in Inventory, Taxes, Time Management, Uncategorized

Time to do Inventory!

The word ‘inventory’ sometimes conjours up memories of the past, depending on what is on your resume before you left the rat race and became your own boss.  I was in retail grocery, so mine is coming to work in the dark, before the store opened.  I had massive amounts of caffeine of every form, in each hand.  Once there, my handy notebook had last month’s Inventory, a spreadsheet to fill out, my bills for the month, calculator and pen.  The picture above is how much inventory I felt I would be counting, when in fact it was much less than that.

Disclaimer -The advise I am giving is from my personal experience.  I am not an account nor a financial advisor so please seek one out because what you read in the internet is not always accurate.

I do inventory once a year.  I’m not running an Anchor EBay Store, but am spread out on EBay, Etsy, Poshmark and Amazon.  I have listed and unlisted inventory.  Thankfully, I do not have a storage unit, but I can honestly say that my inventory is in 5 rooms of my 3 bdrm, 1.600sf home.  So, my inventory count will take one full day and I am allowing myself a pajama day!

Here are some general tips that will hopefully make your inventory day easier:

  • Clear out an entire day in your Happy Planner to do this.  This is something you do not want to start, stop and start again.
  • If you start Monday morning at 8am, your ending day should be Sunday at midnight.  Anything you have sold from midnight and throughout the day should be counted as unsold inventory.  This is so you and your accountant are not confused on your count.
  • You need to know the amount you paid for the item.  As reseller, most of the time we usually can remember where we found the item and what we paid for it.
  • The best way to decide how much your items are worth is through sold comps.  This is especially true if we have a relationship with the item. Do not romanticize on how much you would love to sell the item for.  Force your fingers to do the walking through Google.
  • If you decide you are going to throw away the item or donate, you do count this item in your inventory.  Remember, what you had at midnight is what you are counting.  Just be sure to write down your total of items thrown out or donated so that you can claim that on next year’s taxes.
  • Today is NOT the day to change where you put things or change your tracking system.  I know it sounds like killing two birds with one stone.  The only thing it will kill is you, after you forget if you counted this item or not.  Focus on one thing.
  • Be prepared to be amazed at the items you find and either forgot you had or realize it isn’t listed for sale.  This part never frustrates me as it is like a secret sourced stash that you can list on a rainy day.

I would love to know if any of this helped you to prepare.  If so, leave a comment.  If you have been enjoying these blogs, just press the subscribe button and you will be notified when I put new content up.

#JewelsForThePauper

Where Items are Fit for a Queen

But

Priced For the Pauper

Posted in New Year, Taxes

Death and Taxes

Disclaimer: I am not a tax professional.  I am not promoting any tax preparation company.  You should consult your own tax professional and spouse when making any financial decisions.

The same signer of the Constitution that said ‘a penny saved is a penny earned,’ warned us of the certainty of death and taxes.  I am sure we can all admit at one time or another we have wondered if death would be easier.

I have owned some type of home-based business for 29 years either part or full-time.  In that time, I have never done my own taxes.  My biggest reasons are because I want my money back and the ever-changing tax code.  Did you know that the amount you pay to have the business portion of your taxes done is tax-deductible?

I call my tax professional the first week of January to schedule an appointment.  I make it for February 2ND because it is easier to remember – Ground Hog Day!  Why postpone this date?  You know it is inevitable.  If you owe, it gives you time to budget.  If you are owed, you get your money back sooner.  I have had taxes done on April 14th, and that is not the kind of adrenaline rush I want to experience again.

I keep every receipt in a drawer during the year.  I tell myself that I will find some way of organizing them each year and it never happens.  I sort the receipts as I am getting things ready for the tax professional.  Items to look for are home repair, upgrades to your home, office supplies, cleaning supplies, real estate taxes, mortgage interest, car repair and restaurant receipts.  There are several more, but this gives you a general idea.

Since you are running your business in your home, it is important to know the total square footage.  Next you need the square footage of each room you use for your business in your home.  Next, you need to give an honest number of hours per day that you are working.  Your tax professional will need these totals to figure the percentage of home expenses to deduct, such as your lights, internet and landline.

Throughout the year, you should have some sort of way to record the mileage on your cars.  You will need the total miles driven and total business miles.  I also record miles I drive to volunteer because that can also be tax-deductible.

The year I decided that all of my sourcing, fees and income would go through one account made all of this so much easier.  I am selling on four different platforms, doing some consignment, I did some advertising and promotions.  PayPal is what I use and it actually does most of this for you.

I believe that the most important advise I can give is to be honest.  Just because you sourced an item during your vacation does not make it a business trip.  Your blogging at McDonald’s doesn’t make it a business lunch.  Your new refrigerator is not a new laptop.  Your cats are not your virtual assistants.  You do not want your next business expense to be mileage driving to the IRS because you have been audited.

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#JewelsForThePauper

Where items are Fit for a Queen

But

Priced For the Pauper