Finances Archives - The YarnyBookkeeper

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.

What's your Owner's Equity? For sole proprietors (and single member LLC’s), equity is your contributions of cash and property into your business MINUS any withdrawals or money you take out of your business.

Finances

5 Things your Balance Sheet would tell you, if it could talk

Understanding 5 things your balance sheet would tell you if it could talk about your business is important for your success. You don’t have to be an accountant or super great with numbers to create one. If you have accounting software, it’s prepared and updated automatically as you enter your daily information. It just doesn’t …

First, let's look at a correctly formatted Profit & Loss (shown below) and then we'll do a deep dive into what goes where and the 7 things your report is trying to tell you and how you can use that information to make sound business decisions.

Finances

7 things your Profit & Loss Report is trying to tell you

Did you know that your Profit & Loss Report is trying to tell you 7 key things about your handmade or creative business. Do you know what they are and what it’s trying to tell you? Many business owner’s think that a Profit & Loss Report (or Income Statement) is just a bunch of numbers …

Finances

Bookkeeping & how to overcome your fear of numbers

Keeping on track of your numbers (finances) determines your success or failure. If you are constantly avoiding your bookkeeping you’ll never get a handle on your financial numbers. Bookkeeping & how to overcome your fear of numbers Bookkeeping & how to overcome your fear of numbers is this weeks topic, because I hear things like …

Finances Handmade or Creative Business Basics Starting your handmade or creative business

Why do I need to do bookkeeping for my handmade business?

Bookkeeping is essential for your handmade business. Transitioning from a hobbyist to a business owner requires a mindset shift and diligent tracking of expenses and revenue. By keeping accurate records, you gain insights into your profitability, make informed pricing decisions, and fulfill tax obligations. Though it may seem daunting, effective bookkeeping is crucial for managing your business finances. Discover why this is a must-read for handmade business success.