Steph Malone
Jun 14, 2011
Bookkeeping For Crafts/ Art Businesses?
If I List Supplies And Their Value Under Inventory, And Then The Cost Of Finished Pieces And Works-in-process Isn't This Redundant? I Am Under The Impression That I Need To Only List In Inventory The Things That Can Be Traced To Particular Pieces. So I Do That. Supplies I Have On Hand To Create Works Are Listed As Assets Under Inventory. But Then There Is Finished Works And Works In Process Also Under Inventory. If I Were To List The Value Of The Supplies And Then The Value Of The Finished Pieces And Works In Process Wouldn't There Be Redundancy? Say I'm Making Knitting Needles And Selling Trinkets Found At Flea Markets:
Assets
Inventory
Items Ready For Sale
Works In Process
Knitting Needle Supplies
Packaging
I Would Be Entering Supply Costs As I Purchase Them, And The Value Of Needles As I Start Making Them And As I Finish Them. So Twice Their Associated Costs Are Counted, And A Third Time Because The Cost Of Supplies To Make These Very Items Is Also Entered.
I Am So Confused! I Am Starting A Fine Art And Craft Business Where I Plan To Sell Reproductions Of My Own Work As Well As Craft Items. How Do I Set Up My Bookkeeping To Comply With The Irs Rules Regarding Inventory And Then "uniform Capitalization Rules?" I Am Small Time And I Can't Afford A Cpa Or Bookkeeper Now, I Have "bookkeeping For Dummies" And "business Guide For Visual Artists" And Some Columnar Pads. Someone Help Me Out Here Please.
Thank You Rob- That Explains It!
Now Does Someone Know What Materials I Should Be Counting As Supplies And Which As Inventory? By "supplies" I Mean Expenses, Which I Think Means Stuff That Doesn't Need To Be Depreciated But Is Not Traceable To A Particular Piece And Part Of The Cost Of Doing Business, Like Office Supplies, Paint Brushes, Etc. If For Instance, I Am Producing Photographs, Do I Count A Box Of Photo Paper As A Supply Or As A Inventory Item? Because Eventually About 94% Of Those Photo Papers Are Going To Become Part Of The Finished Piece. What About Photo Chemicals And Film?
Assets
Inventory
Items Ready For Sale
Works In Process
Knitting Needle Supplies
Packaging
I Would Be Entering Supply Costs As I Purchase Them, And The Value Of Needles As I Start Making Them And As I Finish Them. So Twice Their Associated Costs Are Counted, And A Third Time Because The Cost Of Supplies To Make These Very Items Is Also Entered.
I Am So Confused! I Am Starting A Fine Art And Craft Business Where I Plan To Sell Reproductions Of My Own Work As Well As Craft Items. How Do I Set Up My Bookkeeping To Comply With The Irs Rules Regarding Inventory And Then "uniform Capitalization Rules?" I Am Small Time And I Can't Afford A Cpa Or Bookkeeper Now, I Have "bookkeeping For Dummies" And "business Guide For Visual Artists" And Some Columnar Pads. Someone Help Me Out Here Please.
Thank You Rob- That Explains It!
Now Does Someone Know What Materials I Should Be Counting As Supplies And Which As Inventory? By "supplies" I Mean Expenses, Which I Think Means Stuff That Doesn't Need To Be Depreciated But Is Not Traceable To A Particular Piece And Part Of The Cost Of Doing Business, Like Office Supplies, Paint Brushes, Etc. If For Instance, I Am Producing Photographs, Do I Count A Box Of Photo Paper As A Supply Or As A Inventory Item? Because Eventually About 94% Of Those Photo Papers Are Going To Become Part Of The Finished Piece. What About Photo Chemicals And Film?
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