If there was just ONE piece of advice that I could give small business owners or someone who is considering starting a handmade business, it would be this:
...save your receipts!
Every lasting one of them.
The tax deadline passed us a bit ago and I am learning my lesson better each year. I did just so-so saving my receipts from 2010 but it was better than 2009. I found a few more receipts in an obscure place [naturally] that totaled about $125. That would have saved me a few more pennies to send to our dear government.
This year, I've gotten so serious that I even bought a small, expandable file. You know the kind?
As good as I've done, there are still more things that I need to print off the computer to include in my file.
Here's a list of expenses I have come up with that maybe you encounter in your small business, too. Some are more obvious than others. :)
*[naturally] any receipt from any store when you purchase supplies for your inventory
*display items for craft shows
*monthly expenses for email marketing services
*blog or shop re-design
*shipping expenses
*gas expenses [might be a bit hard to keep track of depending on how often you fill up your tank]
*business course expenses [i.e. continuing education]
*paid advertising on blogs
*Etsy or Big Cartel bills
*any subscription fees related to your business [Flickr, Picnik, etc...]
You would be surprised to find how quickly business expenses add up! I am surprised!
Obviously, I don't support needling your way out of tax paying. I am a proud, tax-paying citizen!!
Hopefully, this is an encouragement to you to save receipts! You'll be grateful on April 15, 2012!
Happy Tuesday!
