Welcome to the Small Business Ideas Forum! We are a community of over 100,000 small business folks with over 163,000 posts for you to browse. We pride ourselves on being the friendliest forum you will find and we'd love to have you as a member of our community. Please take a moment and register for a free account. If you need any help, please contact Chris Logan.

Small Business Ideas Forum

Small Business Ideas Forum

A friendly place to share small business ideas and knowledge, ask questions, find help and encourage others that are involved in the small business industry. Topics include small business marketing, generating revenue and small business computing.

Go Back   Small Business Ideas Forum > Generating Revenue, Insurance, Taxes, Etc. > Small Business Finance
Register Search Today's Posts Mark Forums Read

Thread Tools
Old 27th March 2013, 03:29 PM   #1

Join Date: Feb 2013
Location: New York
Posts: 3
Default Accounting For Sole Proprietorship

I am thinking of selling my handmade art works at a local craft market once a month (as sole proprietorship). Can someone recommend me how to organize my accounting in this case?

1) Do I need to use any type of accounting software (e.g.QuickBooks) and do I need to register all transactions in there? If I use a separate (business) bank account all my transaction will be already listed in there... so why do I need to do this again in QuickBooks while I can get a statement from my business account?

2) If I sell my works for cash, how to I register these transactions? I saw a lot of sellers at this craft market sell things for cash and don't give buyers a receipt.

3) If I have some expanses that I pay in cash. e.g. I pay to another artist for a part that I cannot do myself. How do I register these transactions and what prove do I have to write it off taxes?

4) I use 1040 Schedule C when I file taxes. I have read somewhere that I need to pay taxes quarterly... how does it work? Do I transfer money to IRS quartelly?

Thank you

michael187 is offline   Reply With Quote
Register or log in to remove this ad.
Old 28th March 2013, 02:02 PM   #2

Join Date: Jun 2011
Location: San Diego
Posts: 77


Software isn't required, but it doesn't take much activity before it's well worth it. If you have used a Schedule C, then you know what numbers you need, so it's just a question of how you add them all up.

The money you spend is not the same as expenses. For example, paying a credit card or other debt is not an expense, and purchases of equipment that will last more than a year must be depreciated. So your expenses will not match your bank account. Accounting software will help you track all of that.

To me, reconciling the bank statement to your accounting software is a good way to make sure you did not lose any receipts.

Cash transactions with no receipts are usually unreported, and skirting tax laws.

If you pay for anything with cash, and you want to write that off as expense, you should get a receipt to CYA.

If you end up owing tax at the end of the year, the IRS will want you to make estimated payments the next year so you are closer to "balanced" by the end of the year.

Last edited by jgbreeden; 28th March 2013 at 02:04 PM.
jgbreeden is offline   Reply With Quote


Similar Threads
Thread Thread Starter Forum Replies Last Post
So Your Business Is A Sole Proprietorship … What Does That Mean To You? KCMacdonald Small Business Finance 0 21st June 2010 06:11 PM
Do You Know Why Accounting Is Essential For Your Business? KCMacdonald Small Business Finance 0 18th June 2010 10:25 PM
Accounting V. Finance - 3 Tips Allectus General Small Business Issues 0 15th May 2010 01:44 PM
newbie needs help: sole proprietership vs partnership shellies General Small Business Issues 5 12th January 2010 04:03 AM

Thread Tools

Get Updates
RSS Feeds:
RSS Feed for Small Business Finance RSS for this Category Only: Small Business Finance

RSS Feed for Small Business Ideas Forum RSS for Entire Forum
Forum Rules

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump

Small Business Ideas Forum

At Your Business - Small Business Directory
Free Business Forms - Prewritten Documents
Search Engine Guide
Small business guide to search marketing

Small Business Brief
Fetching the Best Small Business Info

Free Links - Free Advertising
Free Guide - Online Directory

Advertise your business here
Contact us for more details!

Semantic Juice
Register now to access free Quick SEO service!

Rocket Lawyer
Sign up for free 7 day trial. Boost your biz!

Buy UPC Codes
Get your products listed online!

All times are GMT -5. The time now is 08:04 AM.

Powered by vBulletin® Version 3.7.3
Copyright ©2000 - 2020, Jelsoft Enterprises Ltd.
Copyright 2004 - 2018 - Privacy