Automatic Business Accounting for Resellers
For the first few years that I sold on ebay I manually kept track of my all of my expenses. When I bought things at Goodwill I would take them home, and record all of the prices in an Excel Spreadsheet. When they sold I would have to type in a few columns like the selling price (including shipping), the shipping cost, and then another column for final profit! Entering this financial data into my computer took me hours each week. I didn’t know there was an easier way to approach this part of business. I spent another year of drudging through the monotony of manually entering this data, until six months when I finally realized that we’re in the 20th century and automatic bookkeeping was possible.
I heard that Godaddy Bookkeeping (not an affiliate link I just love their service) was the most automatic way to keep track of this information. It’s only 9.99 a month and this small investment has made it possible for me to reach 1000 listings because I finally have the time to take pictures and list 40 things a day. Not dealing with bookkeeping is a huge time saver.
We are not meant to be accountants. We are business owners. We can pay a software program to automatically keep track of this information while we focus on producing profits. I wish I realized a year earlier how cheap the service was.
The only thing that GoDaddy doesn’t keep track of is the Cost of Goods Sold (COGS). Unfortunately, I have to keep a record of the original costs of my sold items because neither ebay nor Godaddy Bookkeeping have access to this information. Only we have the original receipts showin the costs. It sucks but we have to keep track of the costs of goods sold, and there is no automatic way that I know of doing it. Meaning we need to manually type in the costs of our goods. There are ways to speed this process up, but that’s for another post.
A Short Word on Personal Finance
Unfortuantely, personal finance requires more of a hands on approach than business accounting. But a software program called You Need a Budget (YNAB) (No affiliate!) makes personal finance easier to tackle. Their software allows you to directly import your bank balances and then budget with actual numbers. They offer a 34 day free trial. After that it’s only $50 a year.
Last tax season I was anxious about filing my taxes. Thankfully my father paid his accountant to file for me but I still needed to figure out my net profits, and my deductions (I’m going to do another post just on deductions for resellers, so stay tuned.) After doing some research online I came across this book. This book answered so many of my questions about taxes and made me feel much more confident about it.
Money can be very confusing. How do we know how much to put aside for taxes? How can I invest my money? How do I know my deductions? All of these are legitimate concerns, and they are perfect questions for an accountant.
End of 5 Part Series
Post 1 showed how a to save 2 to 3 hours a week on printing, and taping labels by getting a thermal printer. Post 2 talked about the various shipping supplies that will help us streamline the shipping/ packing process. Post 3 was about why a high quality scale is a necessary investment and about all the different shipping options. Post 4 talked about the necessity of shelving, and this post was about automatic bookkeeping with Godaddy.
I hope this 5 part series helped you narrow down the few tools to invest in for ebay! Did I miss any tools that you use in your reselling business? Which tool is the best investment do you think? Let us know below!