Handmade Jewelry Business Not Immune to Taxes – Is Your Business Safe?
Sep 10, 2008 Handmade Jewelry, Uncategorized, fashion jewelry, handcrafted jewelry, handmade bracelets, handmade earrings, home-based business, small business, unique jewelry, wholesale fashion jewelry, wholesale jewelry
Handmade Jewelry-Handcrafted Copper Earrings-Wolf Jewelry
When starting out in the handmade jewelry business or any business for that matter, look to the future by making sure to dot your i’s and cross all your t’s. There is no business that is immune to taxes so make sure all your books are in order from the start.
The best way to ensure that all the tax rules and regulations are being followed is to get your business a chartered accountant. They are more knowledgeable on tax matters and the required government paperwork. Although chartered accountants can be quite expensive it is an investment in a happy future.
Purchase a business accounting program. Everything may be easy to keep track of now but when your business grows it is too easy to forget important dates and information. We used to spend many hours every month trying to input invoices and amounts. With accounting programs everything is kept up to date and reminders such as due dates just pop up in front of you. This is a time saver and well worth the small investment.
Get a bookkeeper! Right from the start is much easier as there won’t be a backlog of transactions to input. Make sure to go with the accounting program that your bookkeeper is familiar with, just to lessen any learning curve. Everything will be input in the proper account and all bills and receipts will be reconciled at the end of every month.
Make sure your accounting is up to date. Make all payments and returns ready early, missed payments or late payments are red flags to the tax people. They see these as your inability to keep track of important information. If the tax people are continually seeing your business name next to red flags it won’t be long before they pay you a visit. No one is ever happy to see them at their door.
The tax people are becoming more diligent in tracking down home-based small business. Sometimes I think we all have a big bull’s eye on our forehead. It seems everyone you talk to has had a run in with the government, though few readily admit it. It feels like it’s only a matter of time. Make sure you are ready, better safe than sorry.
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Tags: articles, blogs, business, copper jewelry, fashion jewelry, handcrafted artisan jewelry, handcrafted jewelry, handmade bracelets, handmade earrings, Handmade Jewelry, unique jewelry, wholesale fashion jewelry, wholesale jewelry
September 18th, 2008 at 6:59 am
thanks for sharing the information, like to know the details
September 19th, 2008 at 12:47 am
I would add – avoid using a CPA for your bookkeeping needs. Those are different professionals with different skills. A CPA, for example, may help you optimize your chart of accounts and choose a tax strategy for your business and that will cost you a $100 per hour or more. Your bookkeeper will handle less complicated stuff and will charge you much less $10-$15/hour. Interview several of them and do not forget to check their references.
November 7th, 2008 at 6:24 am
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