That time of year is quickly approaching... I'm talking about
dreaded taxes! To make tax time easier this year and certainly
next year, read on.
As is the case with many other small business owners I've talked
with, taxes, recordkeeping, and all that darned paperwork are
the hardest and most unpleasant parts of running your own
business. However, I have established a system for tracking my
antiques and collectibles business inventory and expenses, which
keeps headaches to a minimum. Keeping Uncle Sam happy (KUSH) is
important, too! Numerous books on small business operation are
available today. I suggest visiting a local bookstore or library
and just sitting down with a stack (and there are stacks of
them!) to see which one works best for you. My
inventory-tracking system works for me because it's simple. I
don't like to do this part of my antiques business, so I have to
keep it simple or it would be overwhelming. But as long as I
stay on top of things, I'm fine. I estimate that I spend four to
six hours a month at the task of recordkeeping (a little more
than one hour per week).
I keep an inventory sheet that has five columns: Inventory
Number, Description, Purchase Price, Marked (Sold) Price, and
Date Sold. Using this simple method helps me track what I've
purchased and for what price as well as when it sold. To track
expenses other than inventory, I use a relatively simple
software package (Quick Books) on my computer that totals the
numbers I input. The same results can be realized by using a
good old notebook, writing down the date of purchase, where
purchased, and purchase amount, and totaling the amounts
yourself. Tax preparation is not what I call fun, so I use a tax
preparer. For a little more than $100 a year (which is tax
deductible), he does the dirty work, and I keep my sanity. Good
luck in the "business" end of your business!
About the author:
Peggy Hazelwood is the author of From Old to Gold: How to Start
and Run an Antiques Business, $7.95 ebook available at the
Albooktross E-bookstore, http://www.albooktross.com/, in the How
To category.
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