The results for the quiz asking if your bookkeeping needs are simple or complex ARE IN!!!!!!!
Are you excited?
I’m so excited to share the results with you.
In case you missed last weeks blog post, which was a Quiz: Your handmade business bookkeeping – Is it simple or complex. If you missed it, you should go read it.
I developed a quiz for you because I really wanted to get you thinking about what YOU wanted your bookkeeping system to do for you.
A bookkeeping system isn’t a one-size fits all cookie cutter sort of thing like you find in many of the handmade business bookkeeping spreadsheets that you can download.
Simple or complex bookkeeping needs quiz results
The quiz contained 5 questions. Each question is shown below along with percentage based answers. After, the answers I’ll provide an explanation of the results.
#1 – What do you sell?
- 33% of the people make finished items
- 78% create patterns or designs
- 11% sell the samples they make from their patterns or designs
- 11% sell services, like Tech Editing
Yeah! There were a lot of designers taking the survey!
#2 – Where do you sell?
- 75% sell on Etsy
- 78% sell on Ravelry
- 25% have a Facebook shop
- 75% sell on another platform or marketplace
- 25% sell at craft fairs
- 25% sell off their own website
This tells me that your bookkeeping needs are complex because you are having to track sales from multiple places.
You’re logging into multiple places in order to get your sales numbers and then you have to enter all that information into one central place – your bookkeeping system.
You also have to be super careful to not transpose those numbers or everything will get all screwed up!
#3 – What do you want to know about where you sell?
- 56% said they wanted to know which place they sell generates the MOST REVENUE
- 22% said they wanted to know which craft fair was the most profitable
This points to the complex side as well.
In order to know which place or craft fair brings in the most revenue – you also need to know the costs associated with each place. Meaning you would need to know the Cost of Goods/Cost of Sales for each item you sold.
Total Sales MINUS Total Cost of Goods Sold/Cost of Sales EQUALS your revenue.
#4 – General questions about your biz
- 44% have purchased equipment (laptop, knitting machine, loom, spinning wheel, etc.) that has a value of $500.00 or more
- 100% have materials in inventory
- 33% with finished items in inventory
- 56% receive yarn or material support from major companies
- 33% do custom orders
- 22% require deposits on custom orders
- 11% offer or sell gift certificates
- 67% run sales, offer discounts or special promotions
- 67% say that some of the items they sell are subject to Sales Tax
- 89% are selling to out of state customers
- 22% are receiving commissions, ad or affiliate income
Now I’m going to get “bookkeepery” on you, because there are some serious bookkeeping procedures involved with EVERYTHING in this list!
If you’re using spreadsheets you’re about to learn some shocking news!
- Those pieces of equipment that you paid more than $500.00 or more for are considered Assets and you should be keeping a list of when you bought them, what they were and what you paid for them.
- You’ll need to keep track of materials you have in inventory (when you bought them, what it was, and what you paid for it)
- AND you’ll need to keep track of the finished items too (what you have, how much it cost you to make it and even what you plan on selling it for)
- When you receive yarn or materials support from major companies – you’ve just entered into a barter transaction and that needs to become part of your bookkeeping system too.
- The deposit you take on custom orders and the gift certificates you sell are both considered to be liabilities and you need to keep track of who paid you for what and when they paid you.
- When it comes to Sales Tax (OH BOY) you’ll need to track total sales, total non-taxable sales, total taxable sales not only for your home state but also in every state you sell to!
#5 – Let’s talk about your bookkeeping system
- 44% have a bookkeeping system
- 78% are using spreadsheets
- 11% have invested in bookkeeping software
- 33% are happy with their current system
- According to the Quiz Results asking if your bookkeeping needs are simple or complex – 100% feel that their bookkeeping system and/or processes could be improved, BUT aren’t sure HOW to go about it
- 44% are updating their system at least once a month.
If you feel your bookkeeping system and/or processes could be improved like the people who took the quiz – I’m here to help!
And it’s exactly the reason that I created a 6-hour mini-course that will help YOU to figure out or make sure that you’re tracking all the right stuff in your bookkeeping system.