Selling Antiques on eBay: Tips for Store Management and Accounting
Starting up a business can take a lot of work. Finding the products that you want to sell, a location to store that product, marketing, accounting, and more can take up so much time and brain power that it might feel oppressive and overwhelming.
You might not be able to open your own brick-and-mortar business initially, but online retailing is just as important in today’s technologically focused climate. The idea of selling antiques on a modern platform like eBay is a concept that might not have been thought of many years ago, but doing so today can make waves in the online retailing game.
However, before doing anything, you must ensure that your eBay seller accounting practices are in place. You should know exactly what your financial goals are, how you want to account for taxes and income, understand how to transfer your accounting information from eBay to QuickBooks or another accounting software, and more. After all, if your money isn’t in order, your business can’t be, either!
eBay is Like Any Other Store
Even though you might be selling your antique products out of your home or another storage area, you need to remember that if eBay is your primary source of income, you should treat it like any other storefront. Keeping these eBay accounting tips in mind is the first step:
Keeping Accurate Records is a Must
Whether you sell a single antique piece in your storefront or a hundred, you need to keep accurate records of everything coming in and going out of your store. Everything does mean everything.
Whenever you sell an antique piece, make sure that you’re noting that in your documentation. Calculate the cost of each piece, how much shipping was (if it was required), the sales tax, and anything else you can think of relating to the sale. You should also keep all your receipts and invoices relating to each sale because these documents will need to be closely examined when tax time rolls around.
Not having thorough, comprehensive documentation could be highly detrimental to your business because of accounting issues. Even if it seems insignificant, document everything and keep every detail you think might potentially be important later on. Plus, having all of the additional documentation will help you see your business's success year after year, and that’s an incredible feeling!
Consider Using Accounting Software
Unless you are a tax professional, keeping all the tax records and information organized on your own will likely be next to impossible. This is why, to help yourself out in the future, you should invest in some eBay to QuickBooks integration or another form of accounting software.
Inputting all of your information from eBay to QuickBooks or another software might take some time, but with this integration, you will save a lot of time in the long run. Transferring your accounting information from eBay to QuickBooks or another similar platform can make things easier for your tax professional. Having the information accessible online beats storing everything in different folders, binders, and other archaic systems.
Shipping, Shipping, Shipping
Did you know that shipping costs for your business are deductible expenses when tax time rolls around? It’s true! Whenever you have to pay shipping costs, add that to your eBay seller accounting log. It’ll help you keep track of any and all shipping expenses, which might save you quite a bit of money later on when tax time rolls around!
Organization is Key
If you keep all of your documentation but have no filing system for it, you’re doing yourself a disservice. What good is keeping track of every single piece of paperwork or file related to your business when you’re so disorganized that you can’t find it later on?
When you start your business, start by creating folders for everything and ensure that everything is organized as much as possible. If all of your files are saved on your computer, create folders and subcategories for each separate sale, invoice, receipt, and other paperwork that you receive to make finding them easier later on. Also, make sure to change the name and date to locate everything more easily.
If you instead have all of your files in paper form, then having a filing system is paramount to your success. Choose an organizational system, whether sorting things by date, type, sale, etc. and stick with it. Having a solid filing system and following it will save you a lot of heartache and headache in the long run.
Stay on Top of Your Sales Taxes
Depending on your customer's location, you may still be required to charge sales tax even if you’re selling antiques on eBay. Each state and country has different laws about sales tax, so if you are required to collect sales tax, ensure that you’re keeping careful records of all sales and sales tax. You’ll be asked to account for all of the sales tax money collected so that it can be sent to the proper collection authority.
Prepare for Tax Season Early
Even though it always comes around at the same time every year, tax season will inevitably sneak up on you. What makes things more complicated is that, with a small business like selling antiques on eBay, your taxes tend to be far different than the average worker's. There’s nothing wrong with having taxes that are more complex; it just makes things more difficult for you to stay on top of.
That’s why you should start getting everything together for tax season toward the end or beginning of the year. Organize everything as much as possible for your tax professional or, if you handle your taxes on your own, for your well-being. You won’t regret it, and it’ll make your accounting go much more smoothly.
Link My Books
If you’re trying to convert your accounting from eBay to QuickBooks or another software, consider working with Link My Books. Here at Link My Books, our service offers easy and fully integrated accounting software for many major online retailing platforms like Amazon, Shopify, Etsy, and eBay.
After only 15 minutes of setup, the accounting that would once have taken you hours can be parsed down into mere minutes. Plus, because the software can be fully integrated with your selling platform, inputting all of the information is easier than you can imagine. It’s one of the best eBay accounting tips we can hope to give.
If you’re an active eBay seller or are interested in becoming one, let Link My Books help by signing up for free with us today!