Nancy Smyth, The YarnyBookkeeper

The IRS says expenses must be ordinary, necessary, and reasonable — but what does that really mean for makers who buy yarn, tools, and supplies all year long?

Bookkeeping for Makers (Without the Overwhelm) Taxes for Makers - Explained

Handmade Business Expenses 101: What Counts (Ordinary, Necessary & Reasonable)

Confused about what actually counts as a business expense in your handmade business?
The IRS says expenses must be ordinary, necessary, and reasonable — but what does that really mean for makers who buy yarn, tools, and supplies all year long? In this post, we break it down in plain English with real handmade-business examples, so you can make confident expense decisions (and stop second-guessing every receipt at tax time).

Behind the Scenes Creative Biz Foundations

Are you a hobby or a business? The IRS Rules Handmade Sellers Need to Know

Are you a handmade seller wondering if the IRS sees you as a hobby or a real business? This post breaks down how the IRS decides — and why your intent, records, and bookkeeping habits matter more than you think.

a messy maker desk covered with tax time paperwork

Bookkeeping for Makers (Without the Overwhelm)

Your Bookkeeping is a MESS. How To Clean It Up BEFORE Tax Time

Tax time doesn’t have to send you into panic mode. If your handmade business bookkeeping feels like a mess, this post walks you through how to clean it up enough to breathe, get organized, and move forward with confidence — without aiming for perfection.

Taxes for Makers - Explained

Handmade Business Owners – Ever Wonder “What Does the IRS Want From Me?!”

Ever stare at your Schedule C and think, “WHAT does the IRS even want from me?!”
Here’s the truth: they don’t want anything you don’t already have. Learn what the IRS actually expects from handmade business owners — and why organized bookkeeping is the key to stress-free taxes.

Taxes for Makers - Explained

Tax Time for Handmade Business Owners Round-up – Start Here

Tax season doesn’t have to feel scary or overwhelming. This start-here guide walks handmade business owners through what the IRS actually wants, how to clean up bookkeeping before tax time, and which posts to read first—without panic, shame, or jargon.

Pricing, COGS & Inventory

When Inventory + COGS Actually Hit Your Bookkeeping (And Your Taxes)

Confused about when inventory and Cost of Goods Sold actually affect your taxes? This post breaks down when inventory becomes COGS, why your profit can feel “off,” and how it all shows up on your Schedule C—without accounting jargon or panic.
This post was originally written & published 1/27/2020 and has been updated.

a maker desk with yarn and a computer that displays the Handmade Product Pricing + COGS Calculator

Bookkeeping for Makers (Without the Overwhelm) Courses & Freebies Pricing, COGS & Inventory

How to Calculate Cost of Goods Sold (COGS) for a Single Handmade Item (Step-by-Step)

COGS doesn’t have to feel like a mystery novel. Here’s how to calculate cost of goods sold for one handmade item using a crochet amigurumi witch—materials, selling fees, and the bookkeeping flow. PLUS there’s a video showing how this is done using the 10-Minute Bookkeeper system including the Handmade Product Pricing & COGS Calculator. Part 7 of the Inventory + COGS for Handmade Businesses series.

an image showing a calculator, a cost of goods sold worksheet, a notebook and a tax form

Bookkeeping for Makers (Without the Overwhelm) Courses & Freebies Creative Biz Foundations Pricing, COGS & Inventory Taxes for Makers - Explained

COGS + Inventory: 3 Reasons Handmade Sellers Can’t Ignore

Tracking Cost of Goods Sold (COGS) and inventory can feel confusing because bookkeeping, pricing, and taxes all use them differently. This post breaks down the 3 real reasons handmade sellers need to track COGS + inventory — with a full start-to-finish example so your numbers (and profit) finally make sense.