That time of year is quickly approaching... I'm talking about dreaded taxes! To make tax time easier this year and certainly next year, read on.
As is the case with many other small business owners I've talked with, taxes, recordkeeping, and all that darned paperwork are the hardest and most unpleasant parts of running your own business. However, I have established a system for tracking my antiques and collectibles business inventory and expenses, which keeps headaches to a minimum.
Keeping Uncle Sam happy (KUSH) is important, too!
Numerous books on small business operation are available today. I suggest visiting a local bookstore or library and just sitting down with a stack (and there are stacks of them!) to see which one works best for you. My inventory-tracking system works for me because it's simple.
I don't like to do this part of my antiques business, so I have to keep it simple or it would be overwhelming. But as long as I stay on top of things, I'm fine. I estimate that I spend four to six hours a month at the task of recordkeeping (a little more than one hour per week).
I keep an inventory sheet that has five columns: Inventory Number, Description, Purchase Price, Marked (Sold) Price, and Date Sold. Using this simple method helps me track what I've purchased and for what price as well as when it sold.
To track expenses other than inventory, I use a relatively simple software package (Quick Books) on my computer that totals the numbers I input. The same results can be realized by using a good old notebook, writing down the date of purchase, where purchased, and purchase amount, and totaling the amounts yourself.
Tax preparation is not what I call fun, so I use a tax preparer. For a little more than $100 a year (which is tax deductible), he does the dirty work, and I keep my sanity.
Peggy Hazelwood is the author of From Old to Gold: How to Start and Run an Antiques Business, $7.95 ebook available at the Albooktross E-bookstore, http://www.albooktross.com/, in the How To category.
