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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?

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).

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

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.

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

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.

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Why Track Cost of Goods Sold? The Missing Link to Profit in Your Handmade Business

Selling a lot but still feeling like the profit is… missing? 😵‍💫 Cost of Goods Sold (COGS) is the missing link between your inventory and your real profit. In this post, you’ll learn what COGS is (in plain English), why handmade business owners should track it, and how it connects to pricing and tax time—without the accounting headache. 🧶📒

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How To Track Finished Items Inventory for Makers-Without a Spreadsheet Meltdown

Finished items inventory isn’t just what’s sitting on your shelves—it’s money tied up in your handmade business. In this post, you’ll learn how to track finished items inventory using a simple spreadsheet system, what actually needs tracking, and how to avoid the spreadsheet overwhelm that trips up so many makers.

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