Unlocking the puzzle of overhead expenses is key for handmade businesses. These costs, distinct from direct production, keep the gears turning behind your craft. From studio rent to website hosting, delve into the hidden threads weaving your creative journey.
Tracking expenses is vital for your handmade business. By categorizing expenses into Cost of Goods Sold (materials, tools, fees, shipping) and Overhead (licenses, displays, advertising), you gain clarity on your business’s financial health. With consistent record-keeping, you can determine profitability and optimize tax deductions. Embrace the creative aspect of bookkeeping, design your system to reflect your brand, and make it fun to stay motivated. Start by organizing receipts and coding expenses as COGS or Overhead. Take control of your finances and unlock the potential for business success!