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I think you and I have 2 things in common:
- The idea of tracking inventory and managing our finances makes our eyes roll to the back of our skulls.
- Tax season scares the bejeebers out of us.
How close was I?
If at all on point, this post will help you a lot.
My friend Kreithchele is a certified CPA, and I'm taking her online accounting and taxes course created specifically for resale and boutique businesses.
Kreithchele is extending a $50 discount to my readers (isn't she da bomb?) so click here if you want to dig deeper.
But today, I want to help you out with some basics!
Here's what to expect:
I will briefly review 5 financial variables that I recommend you track. Before we start, download my free spreadsheet, so I can walk you through how I use it to track those variables in a short video.
First of all, record these...
1. Inventory Cost
How much did you initially pay for your garment? Some resellers record the exact cost per item; others log an average. I prefer the latter, but more on that later.
2. Price Sold
This figure is important! Even though you have fees coming out later, we can track patterns and determine our average sale price.
You can't avoid fees! Poshmark takes 20%, and eBay/Paypal takes ~15% together. Wherever you sell, you need to account for their fees.
At the end of the day, your profit is what goes into your pocket.
5. Date Sold
You record dates to help further organize profits and track patterns.
Next, let's put them to work...
In this video, I will integrate all the variables we discussed earlier into an inventory & sales spreadsheet. If you'd like to follow along, don't forget to download your spreadsheet.
Otherwise, join me and glean what you may!
This spreadsheet is the backbone of my inventory management, and I pull a lot of numbers from it when it's time to budget.
However, it doesn't have the ability to generate income reports and balance sheets. You need those to evaluate how your business is doing!
Luckily, I've almost finished Kreithchele's course! I'm busting out reports, talking about profitability, looking at my assets, and not stressing over the 2018 tax season.
After the $100 discount, the course costs $47 or $72 if you want to join the Facebook discussion group. We have live discussion videos, and Kreithchele is on top of answering all of our questions.
Hope to see you there!