A Good Bookkeeping System Helps You Complete Schedule C
Tax season is HERE and it’s time to file your Schedule C! This post includes an overview of the Schedule C for craftpreneurs and how a good bookkeeping system helps you complete it.
Tax Time Help for Handmade Business Owners
Tax time is right around the corner, and if you’re a handmade business owner there are “things” you need to keep track of and record in your bookkeeping system for tax purposes. This post has some bookkeeping and tax time tips to make your life easier.
Handmade Business Expenses Must Be Both Ordinary and Necessary
Handmade business expenses MUST BE BOTH ordinary and necessary, according to the IRS in Publication 535 – Business Expenses and Publication 334 – Tax Guide for Small Business, in order to be deductible on your Schedule C Tax Return. But what the heck does ordinary and necessary even mean? I’ll explain in this post.
Let’s talk about your handmade business finances!
Let’s talk about your handmade business finances and finance systems because I’m betting that those are terms you hear a lot and they sound pretty vague, right??? Like WTF do these terms even mean and what have I gotta do to make it all happen?????
If you’re like most handmade business owners, I’m betting you think that a handmade business finance system is just about getting a business bank account and then keeping personal and business expenses separate – because that’s what you’ve been told.
But there’s SO much more to it than just having a business bank account and keeping business and personal expenses separate.
Use PayPal? Sell on Etsy? Say hello to the 1099-K
Do you use PayPal? Sell on Etsy? If you do, say hello to the 1099-K! There are big changes ahead because the IRS and State governments don’t want you to forget about their share of your sales. All you handmade, creative, and craft business owners who: sell finished items, digital patterns, or services on places like Etsy, eBay, Ravelry, etc. …
Sales Tax – What Craft Business Owners Need to Know
What craft business owners need to know about sales tax. In a nutshell, Sales Tax nexus happens when your business has some sort of connection to another specific state(s). That connection can be either physical, economic, or both.
End tax time panic, update your bookkeeping all year
Want to end tax time panic? It’s simple, update your bookkeeping weekly all year long. Tax time comes but once a year. So many handmade business owner scramble to do months worth of bookkeeping tasks to “hurry up” and get ready for tax time, in a relatively short amount of time – hating every second of it. Leaving the bookkeeping …
Form 1099-NEC & your handmade business
Form 1099-NEC is used to report non-employee compensation of $600 or more during the tax year (2020). Handmade business owners, if you paid more than $600 to someone that is NOT an employee, you could likely have to file a Form 1099-NEC. Tax season is here, and it means more than just getting YOUR income and expenses in order so …