Hi there, fellow yarn lovers!
OMG, can you believe it’s JULY???? We’re past the halfway point of the year and heading into the 3rd! YIKES!!
Where has the time gone?
Here are some July bookkeeping tips for craftpreneurs who dream of making a 6-figure income from their handmade, creative, or craft business.
I get it, this is the time of year where we all start to lose our bookkeeping momentum. We came in HOT in January, when we know that we have to get last year’s books in order for tax time, cause we didn’t touch a dammed thing as far as bookkeeping was concerned.
That momentum carries right on through the middle of April when last year’s bookkeeping is done and our tax returns have all been filed.
But, by the time we hit July, our minds are on other things – like SUMMER VACATIONS, plans for making money, making sales, scurrying to make inventory for fall fairs, growing our audience, and so many other things like the kids being home from school, oh and did I mention summer vacations.
July is pretty much vacation time for me. We rented a seasonal spot in our favorite campground this year and we’ve spent a lot of time here at our mini-home away from home!
Bookkeeping is like knitting or crocheting a sweater!
But, let’s get back to that dreaded 11-letter word……BOOKKEEPING!
I know that bookkeeping can feel scary and intimidating for many craftpreneurs, but it doesn’t have to be.
Think of your bookkeeping like making a sweater:
- start with the basics (a pattern & learning any new stitches)
- gather your supplies (yarn & needles)
- cast on or create your foundation chain (set up your bookkeeping system)
- knit or crochet (enter your bookkeeping transactions)
- bind off & weave in your ends (close your books)
- block your finished sweater (review your financial reports)
Here are 6 bookkeeping tasks that you should do during the month of July:
These are some of the bookkeeping tasks that you should be doing in July for your handmade business. Of course, there may be other tasks that are specific to your situation or industry, so feel free to adjust them as needed. The important thing is that you stay on top of your bookkeeping and don’t let it pile up or overwhelm you.
- Review your income and expenses for the first half of the year. This will help you see how your business is doing financially and if you need to make any adjustments to your budget or goals.
- Reconcile your bank accounts and credit cards. This means making sure that your bookkeeping records match your bank statements and credit card statements. This will ensure that you have accurate and complete data for your financial reports.
- Update your inventory records. If you sell physical products, you need to keep track of how much inventory you have on hand, how much you purchased, how much you sold, and how much it cost you to make or buy your products. This will help you calculate your cost of goods sold and your gross profit.
- Prepare and file your sales tax returns. If you collect sales tax from your customers, you need to report and remit it to the appropriate tax authorities on a regular basis. The frequency and deadlines vary depending on where you live and where you sell, so make sure you check the rules for your location.
- Review your pricing strategy. Pricing is one of the most important aspects of running a successful handmade business. You need to charge enough to cover your costs and make a profit, but not so much that you lose customers or sales. You also need to consider your target market, your competitors, your value proposition, and your goals when setting your prices. 6. Plan ahead for the next quarter. The third quarter of the year is usually a busy time for handmade businesses, as it includes the holiday season and other special occasions. You need to plan ahead for things like marketing campaigns, product launches, inventory management, cash flow projections, and tax payments
- Plan for the 3rd quarter. The third quarter of the year is usually a busy time for handmade businesses, as it includes the holiday season and other special occasions. You need to plan ahead for things like marketing campaigns, product launches, inventory management, cash flow projections, and tax payments.
Did you miss these newest posts on the blog?
- Craft Your Financial Success with Zoho Books & Inventory
- Crafting Success: How Goal Setting Simplifies Bookkeeping
- Craft An Intentional Spending Plan For Your Black Friday Shopping
- Your Handmade Business is Making Money! Yay!
- It’s so easy to get distracted this time of year!
Are you a motivated craftpreneur who wants step-by-step instructions on how to setup and use a bookkeeping system from the very beginning?
If so, the Handmade Business Bookkeeping Academy is worth checking out. It’s an annual or monthly subscription – choose which one fits your budget. Check it out the Academy membership.
I hope you found the July bookkeeping tips to be helpful and informative. If you have any questions or comments, please leave them below, contact me through my social media channels or pop me an email.
Until next time, happy crafting!
