Helping handmade, creative and craft business owners learn to handle their bookkeeping, one step at a time!
Helping handmade, creative and craft business owners learn to handle their bookkeeping, one step at a time!
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Inventory is sort of a bookkeeping black hole.
You have to keep track of the cost of all the materials and supplies that you keep on hand to make your finished items, in detail – but you can’t deduct what you spent when you spend it.
Yes, you spent the money – but Inventory is an Asset and it’s tracked on the Balance Sheet. It doesn’t hit Cost of Goods Sold on your Profit & Loss Report UNTIL you sell the item that you used the materials in and then it’s only the cost of the materials that you used in that specific item.
Inventory consists of the cost of:
How inventory works and why it’s important in your handmade, creative, or craft business can be totally confusing to understand. Running a handmade, creative, or craft business is a labor of love. The overhead required to keep it running smoothly is usually your precious time and energy. Understanding how inventory works and why it’s important to keep track of it, allows …
Finished items inventory is this weeks topic. If you’ve been wondering how to track your inventory of finished items using spreadsheets, I’ll teach you how in this blog post. Keeping track of inventory is tough. There are so many moving pieces that you need to keep track of. Materials and supplies that you buy and use Finished items as they …
How to track inventory is a question that makes the eyes of most handmade and creative business owners glaze over in confusion and perhaps just a touch of terror. This post offers practical tips on how to track inventory including what info you need to track. Last week, in Part 1 of this 4 part series on Inventory and Cost …
INVENTORY – an accounting term and bookkeeping task that causes terror and total confusion in the hearts and minds of makers, designers, or anyone who owns a handmade or creative business. Let’s start with – Why is inventory important? Materials and supplies are probably the BIGGEST spending category many of us have in our handmade or creative business. BUT we …
A physical year-end inventory is an absolute MUST for every creative or handmade business owner. Let me start by saying that inventory is an animal all of it’s own. Inventory, just like any animal, needs constant attention. EVERY creative or handmade biz that has inventory MUST: do a physical inventory when you decide to start your business (or finally make …