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Twigs Tax Tips
Tax Preparation Help for Crafters from Twigs

This is the time of year that I really hate. Getting my taxes together. But here are some things I have learned from my accountant to better help me get organized.
I would suggest that you print off every order that you get from your website, Ebay, etc and have monthly file folders to file them in once you have shipped them out.
Also have order forms handy for when you get phone orders.
Remember to have proof of your sales (order forms) so you can prove that you are a business and not a hobby.
I suggest that you get a program called QUICKEN, it is very easy. it is like a check book register but you can have a slew of categories and it does reports etc. .check your computer some come with the program now days.
You can either do this on a computer program like quicken or do it the old fashioned way with just paper and file folders.
Get your receipts orders etc in order and each month put in your sales, and receipts for the month this will save you time come January. You will then have monthly tallies and category tallies to see if you are making money and what you are spending your money on.
I print out my category reports and give them to my accountant and she does my taxes from them.
You can also set up a Family tax program too instead of just a business one to keep track of your family expenses: income, insurance, medical bills, houses, land, child care, tithe etc.
Categories for your Crafting Business.
SALES (you can break this down if you want by online sales, storefront sales, craft show sales,  ebay sales, phone orders, distributors etc. if you wish to know where your orders are coming from and if they are being profitable.

INTERNET FEES (.com, web host, picture hosting, ebay fees, crow soup, prim mart, ranting raven, etc.)

STORE FEES (booth rental fees, or monthly payment for actual store building.)

CRAFTING SUPPLIES (fabric, paint, wood, etc)

OFFICE SUPPLIES (paper, pens, pencils, file folders, copies, labels)

OFFICE EQUIPMENT (copy machine, paper folder, new computer, Digital camera, etc these items are depreciative items over so many years)

POSTAGE & DELIVERY (stamps & postage on orders)

ADVERTISING (Mercantile Gatherings, newspapers: Country Register, Magazines: Country Business, Country Sampler etc.., t.v, radio fees)

INSURANCE (insurance on your store building or also home insurance a portion can be deductible if home based business.

UTILITIES (water, electric, phone, cell phone, computer line, garbage) *go through each phone bill and make a list of your long distant calls that were business related.

CREDIT CARD FEES (credit card terminal monthly fee, % fees to credit company, propay, paypal etc.)

HELP WITH BUSINESS (labor, remember anything over $600.00 per year must have personal information on person (social security number, DOB, & address)*Note: get this before they start working, something may happen and you may not be able to get the info later and you could be fined.

SALES REPS (money you pay to sales rep to sell your goods)

MILEAGE (trips for craft gatherings, craft classes, buying supplies, mailing out packages, anything business related, double check receipts to make sure you have all of them.)

DAYCARE (fees for childcare while you work)


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