I would purchase an Excel formulated small business sheet. Revenue COG’s, Depreciations for office, Utilities from home office, mileage, food, lodging when thrifting, then you could just get it from the cloud and file our taxes for us.
Thank you for sharing realistic numbers for Amazon. I don’t sell on Amazon but at $251 an hour I’ll think about it. Just Kidding, I’m busy enough. Best of luck to you and your sales for 2022.
7:20 How do you accurately maintain your Inventory assets? Do you simply put in your CGS of your unsold inventory at the start of each month? How do you do that if you have various price points for the same inventory.. (make 1000 @$2 ea vs 3000@1.75 ea)?
I dont know how I just discovered you, but so glad I did! I have a couple of questions - Thank you in advance for taking the time to answer them. :0) 1. I noticed you ran your P&L on a cash basis, Im wondering if you do a hybrid method of accounting since you carry inventory? 2. Why do you expense your FBA fees instead of counting them as part of your COGS?
Hi Monica 🙂 the cash and accrual options refer to the overall method and not to inventory. Since I record my inventory monthly with a journal entry, it sort of forces the accrual method for inventory, so the report I run ends up technically being the hybrid method. For Amazon fees I've seen both methods. Some people included in COGS and some break it out as a separate expense. I consider cost of goods to be all expenses incurred to get it to a place where it's available for sale. That might include some of the FBA fees but I'd think the majority of them are incurred after the time of sale.
What are your thoughts on current container costs and how it will affect your business? Do you plan on not purchasing more inventory until they stabilize?
Before covid I would ship most of my inventory by air. Then those costs skyrocketed and I started doing by boat. I probably have a year's worth of inventory, so I don't have to order very often.
Last year was my first year reselling. I didn't know what to expect in sales and thought of it as a hobby. A year later I have made more than I expected. I haven't figured my taxes yet but I didn't do quarterly tax payments. I have no other job but file jointly with my husband. Does his work tax payments help me (like if I had another job)? Or am I still responsible for the quarterly payments if I owe $1000 or more (which I don't know yet). Sorry for the long question!
your resources and info have been super helpful. Which bank acc would one transfer their profit/earnings from Poshmark (for example) to pay youself basically? I have opened two accs a checkings for bus expenses and savings for personal expenses. Does it matter when it comes to tax time? Or would it be best to just transfer all earnings to checking (bus acc)? i hope this made sense. thanks
Hi, New subscriber here 👋 Thank you so much for your videos! It's helped my small sole proprietorship business understand taxes since the tax rules changed this year. I have a question about making a separate bank account just for the business. This business is solely mine because my wife is a disabled NY EMT and can't work or make extra money because she will get in trouble. From time to time she does source products at stores if she sees a good deal. So, I've been looking for a few weeks now for a bank that can issue 2 debit cards for the same account under my name. So that way we can both have a debit card to use for the business but just with my name on it. Does a bank like this actually exist? Thank you in advance!
They don't check debit cards anymore as you swipe them yourself so your wife can simply use yours, so she doesn't need her own. I do this all the time for my elderly parents & I don't share their frist names & no one ever asks. And for online shopping as well, she can simply use whatever credit cards, etc., you already have in your name.
Can I take mileage deduction on one vehicle and actual expenses on another? I've been tracking mileage, but I want to use the section 179 depreciation and buy a car at the end of the year and take advantage of the full deduction.
I believe the answer to that is yes. Once you do the actual expenses method on a vehicle, you have to stick with it. You can switch from mileage to actual, but not the other way around.
