Logan510 Posted October 20, 2015 Share Posted October 20, 2015 How do you keep track of everything, do you use a spreadsheet? Link to comment Share on other sites More sharing options...
uchiha101 Posted October 20, 2015 Author Share Posted October 20, 2015 How do you keep track of everything, do you use a spreadsheet? I write all my purchases and sales in wordpad as I don't have a spreadsheet software yet. Link to comment Share on other sites More sharing options...
Ditch Fahrenheit Posted October 20, 2015 Share Posted October 20, 2015 How do you keep track of everything, do you use a spreadsheet? I write all my purchases and sales in wordpad as I don't have a spreadsheet software yet. LibreOffice is free. Link to comment Share on other sites More sharing options...
Logan510 Posted October 20, 2015 Share Posted October 20, 2015 How do you keep track of everything, do you use a spreadsheet? I write all my purchases and sales in wordpad as I don't have a spreadsheet software yet. LibreOffice is free. So is Google drive / Google sheets, which is what I use. Link to comment Share on other sites More sharing options...
uchiha101 Posted October 20, 2015 Author Share Posted October 20, 2015 How do you keep track of everything, do you use a spreadsheet? I write all my purchases and sales in wordpad as I don't have a spreadsheet software yet. LibreOffice is free. So is Google drive / Google sheets, which is what I use. I'll check that out thanks Link to comment Share on other sites More sharing options...
uchiha101 Posted October 20, 2015 Author Share Posted October 20, 2015 How do you keep track of everything, do you use a spreadsheet? I write all my purchases and sales in wordpad as I don't have a spreadsheet software yet. LibreOffice is free. I'll check it out thanks Link to comment Share on other sites More sharing options...
W16227 Posted October 20, 2015 Share Posted October 20, 2015 You're setting accounting principles back centuries. I think part of it---- was with what is considered "inventory"..... He was using the paid amount - you were asking for overall value estimate. Both whorthwhile numbers to know. Gabriel - that first set of numbers you gave sales of ~ 5K, made about 1300 --- this is not a bad return. BUT make sure this is a real number minus all expenses. For any of the calculations - you need to keep track of everything. Get into the habit of doing this - will only help in the long run. For any of the info below - realize that this is based on US tax law and an individual running this as a side or lower end business (for US peeps - filing schedule C). This is a very simple way of looking at a business. A larger business with many other expenses - usually have to operate under more sophisticated rules and guidelines, but hopefully this will help you. It is based on "cash based accounting". This simplifies a lot of the record-keeping. Simply put - whatever money comes in and out is accounted for at that time. Also - it REALLY helps to have ONE credit card and ONE paypal - that is exclusively used for the business. I can download my ccard transactions at the end of the year - and pretty quickly sort items into the right categories. so Gross sales - cost of goods sold (COGS) = gross income/profit. Gross income - expenses = net income. Net income = the one we all want. With the exception of taxes - this is the profit in your pocket! ___________________________________________________ Gross sales = what you were paid. Easiest to throw shipping in this as one sum (as it can be accounted for separately). Ebay makes this pretty easy - you have a transaction for $500 including shipping - they send this over as one payment - then bill fees and shipping separately. This helps a lot. ___________________________________ COGS: This is everything associated with procuring and prepping the material for selling. This example is based on year end taxes - but can really be applied to any time frame - Any inventory cost listed here- is what you paid for it. Inventory value (unrealized gain or loss) - is a separate discussion. to calculate COGS - take------ last years inventory (what you paid for comics) add any new purchases made this year add supplies (bags and boards) add grading/pressing fees from this - subtract end of year inventory (last year inventory + buys MINUS the cost paid for anything sold during the year). ________________________________________________________ so - gross income = gross sales - COGS. Looks great - but now we have EXPENSES....... Expenses: Outbound shipping shipping materials ebay fees paypal fees office suppliers advertising (business cards) legal fees storage (shortboxes) etc..... NET profit = gross profit - expenses Link to comment Share on other sites More sharing options...
uchiha101 Posted October 20, 2015 Author Share Posted October 20, 2015 You're setting accounting principles back centuries. I think part of it---- was with what is considered "inventory"..... He was using the paid amount - you were asking for overall value estimate. Both whorthwhile numbers to know. Gabriel - that first set of numbers you gave sales of ~ 5K, made about 1300 --- this is not a bad return. BUT make sure this is a real number minus all expenses. For any of the calculations - you need to keep track of everything. Get into the habit of doing this - will only help in the long run. For any of the info below - realize that this is based on US tax law and an individual running this as a side or lower end business (for US peeps - filing schedule C). This is a very simple way of looking at a business. A larger business with many other expenses - usually have to operate under more sophisticated rules and guidelines, but hopefully this will help you. It is based on "cash based accounting". This simplifies a lot of the record-keeping. Simply put - whatever money comes in and out is accounted for at that time. Also - it REALLY helps to have ONE credit card and ONE paypal - that is exclusively used for the business. I can download my ccard transactions at the end of the year - and pretty quickly sort items into the right categories. so Gross sales - cost of goods sold (COGS) = gross income/profit. Gross income - expenses = net income. Net income = the one we all want. With the exception of taxes - this is the profit in your pocket! ___________________________________________________ Gross sales = what you were paid. Easiest to throw shipping in this as one sum (as it can be accounted for separately). Ebay makes this pretty easy - you have a transaction for $500 including shipping - they send this over as one payment - then bill fees and shipping separately. This helps a lot. ___________________________________ COGS: This is everything associated with procuring and prepping the material for selling. This example is based on year end taxes - but can really be applied to any time frame - Any inventory cost listed here- is what you paid for it. Inventory value (unrealized gain or loss) - is a separate discussion. to calculate COGS - take------ last years inventory (what you paid for comics) add any new purchases made this year add supplies (bags and boards) add grading/pressing fees from this - subtract end of year inventory (last year inventory + buys MINUS the cost paid for anything sold during the year). ________________________________________________________ so - gross income = gross sales - COGS. Looks great - but now we have EXPENSES....... Expenses: Outbound shipping shipping materials ebay fees paypal fees office suppliers advertising (business cards) legal fees storage (shortboxes) etc..... NET profit = gross profit - expenses Thanks I'll check that out and yes the profit that I gave was after all expenses and I always count them in so that I don't think that I make more then I really do. Link to comment Share on other sites More sharing options...
Wall-Crawler Posted October 20, 2015 Share Posted October 20, 2015 How did you arrive at this number for the value of your inventory? Total Inventory $4709.97 I apologize if this has been answered already but it just looks like you just subtracted what you have sold to date from what you have spent... Are you certain your inventory "adds up" to being "worth" $4,709.97? Link to comment Share on other sites More sharing options...
miraclemet Posted October 20, 2015 Share Posted October 20, 2015 Gabe, what area of comics are you focusing your business on? Link to comment Share on other sites More sharing options...
W16227 Posted October 20, 2015 Share Posted October 20, 2015 How did you arrive at this number for the value of your inventory? Total Inventory $4709.97 I apologize if this has been answered already but it just looks like you just subtracted what you have sold to date from what you have spent... Are you certain your inventory "adds up" to being "worth" $4,709.97? Believe this was the actual stock cost (would then line up with my process) - if you are selling enough to pay taxes - you need to know the cost paid. What you think it will sell for - just an opinion (but boy - I wish I could pay taxes based on opinion, ) Even if you have to sell it for LESS than what you paid - this should be the general "inventory" number. This is what is used for the gross profit calculation --- or in some cases,,,,, gross loss ( and boy, any loss is gross)! Sales for losses happen. They need to be tracked as much as gains--- and at the end of the year, the hope is the business plan was strong enough to be in the positive side. Link to comment Share on other sites More sharing options...
uchiha101 Posted October 20, 2015 Author Share Posted October 20, 2015 How did you arrive at this number for the value of your inventory? Total Inventory $4709.97 I apologize if this has been answered already but it just looks like you just subtracted what you have sold to date from what you have spent... Are you certain your inventory "adds up" to being "worth" $4,709.97? Not at all my inventory, sales and purchases are all separate but yes the inventory does add up to $4709.97 Link to comment Share on other sites More sharing options...
uchiha101 Posted October 20, 2015 Author Share Posted October 20, 2015 Gabe, what area of comics are you focusing your business on? Tough question since I focus on what I believe I can flip but my biggest focus with the my sales has been the silver age comics. Link to comment Share on other sites More sharing options...
uchiha101 Posted October 20, 2015 Author Share Posted October 20, 2015 How did you arrive at this number for the value of your inventory? Total Inventory $4709.97 I apologize if this has been answered already but it just looks like you just subtracted what you have sold to date from what you have spent... Are you certain your inventory "adds up" to being "worth" $4,709.97? Believe this was the actual stock cost (would then line up with my process) - if you are selling enough to pay taxes - you need to know the cost paid. What you think it will sell for - just an opinion (but boy - I wish I could pay taxes based on opinion, ) Even if you have to sell it for LESS than what you paid - this should be the general "inventory" number. This is what is used for the gross profit calculation --- or in some cases,,,,, gross loss ( and boy, any loss is gross)! Sales for losses happen. They need to be tracked as much as gains--- and at the end of the year, the hope is the business plan was strong enough to be in the positive side. Yes that's correct the inventory is comics I have yet to sell but know for sure that I can sell them at the same price I bought them for and I haven't calculated any profit I think I'll make from the inventory. If you guys are interested in gross loss and gross profit I can calculate those as well. The majority of my losses are due to overpaying for comics and some deals I got burned on and I'm surprised I did as well as I have I thought with all my mistakes I'd be deep in the red. Link to comment Share on other sites More sharing options...
Wall-Crawler Posted October 21, 2015 Share Posted October 21, 2015 What are the books that make up your inventory of $4,709? Link to comment Share on other sites More sharing options...
oakman29 Posted October 21, 2015 Share Posted October 21, 2015 You're setting accounting principles back centuries. I think part of it---- was with what is considered "inventory"..... He was using the paid amount - you were asking for overall value estimate. Both whorthwhile numbers to know. Gabriel - that first set of numbers you gave sales of ~ 5K, made about 1300 --- this is not a bad return. BUT make sure this is a real number minus all expenses. For any of the calculations - you need to keep track of everything. Get into the habit of doing this - will only help in the long run. For any of the info below - realize that this is based on US tax law and an individual running this as a side or lower end business (for US peeps - filing schedule C). This is a very simple way of looking at a business. A larger business with many other expenses - usually have to operate under more sophisticated rules and guidelines, but hopefully this will help you. It is based on "cash based accounting". This simplifies a lot of the record-keeping. Simply put - whatever money comes in and out is accounted for at that time. Also - it REALLY helps to have ONE credit card and ONE paypal - that is exclusively used for the business. I can download my ccard transactions at the end of the year - and pretty quickly sort items into the right categories. so Gross sales - cost of goods sold (COGS) = gross income/profit. Gross income - expenses = net income. Net income = the one we all want. With the exception of taxes - this is the profit in your pocket! ___________________________________________________ Gross sales = what you were paid. Easiest to throw shipping in this as one sum (as it can be accounted for separately). Ebay makes this pretty easy - you have a transaction for $500 including shipping - they send this over as one payment - then bill fees and shipping separately. This helps a lot. ___________________________________ COGS: This is everything associated with procuring and prepping the material for selling. This example is based on year end taxes - but can really be applied to any time frame - Any inventory cost listed here- is what you paid for it. Inventory value (unrealized gain or loss) - is a separate discussion. to calculate COGS - take------ last years inventory (what you paid for comics) add any new purchases made this year add supplies (bags and boards) add grading/pressing fees from this - subtract end of year inventory (last year inventory + buys MINUS the cost paid for anything sold during the year). ________________________________________________________ so - gross income = gross sales - COGS. Looks great - but now we have EXPENSES....... Expenses: Outbound shipping shipping materials ebay fees paypal fees office suppliers advertising (business cards) legal fees storage (shortboxes) etc..... NET profit = gross profit - expenses Thanks I'll check that out and yes the profit that I gave was after all expenses and I always count them in so that I don't think that I make more then I really do. Whew! I'm glad I just collect comics, this sh-t is hard. Link to comment Share on other sites More sharing options...
uchiha101 Posted October 21, 2015 Author Share Posted October 21, 2015 What are the books that make up your inventory of $4,709? I'll get back to you on that but I'm sure you guys wouldn't agree Link to comment Share on other sites More sharing options...
uchiha101 Posted October 21, 2015 Author Share Posted October 21, 2015 You're setting accounting principles back centuries. I think part of it---- was with what is considered "inventory"..... He was using the paid amount - you were asking for overall value estimate. Both whorthwhile numbers to know. Gabriel - that first set of numbers you gave sales of ~ 5K, made about 1300 --- this is not a bad return. BUT make sure this is a real number minus all expenses. For any of the calculations - you need to keep track of everything. Get into the habit of doing this - will only help in the long run. For any of the info below - realize that this is based on US tax law and an individual running this as a side or lower end business (for US peeps - filing schedule C). This is a very simple way of looking at a business. A larger business with many other expenses - usually have to operate under more sophisticated rules and guidelines, but hopefully this will help you. It is based on "cash based accounting". This simplifies a lot of the record-keeping. Simply put - whatever money comes in and out is accounted for at that time. Also - it REALLY helps to have ONE credit card and ONE paypal - that is exclusively used for the business. I can download my ccard transactions at the end of the year - and pretty quickly sort items into the right categories. so Gross sales - cost of goods sold (COGS) = gross income/profit. Gross income - expenses = net income. Net income = the one we all want. With the exception of taxes - this is the profit in your pocket! ___________________________________________________ Gross sales = what you were paid. Easiest to throw shipping in this as one sum (as it can be accounted for separately). Ebay makes this pretty easy - you have a transaction for $500 including shipping - they send this over as one payment - then bill fees and shipping separately. This helps a lot. ___________________________________ COGS: This is everything associated with procuring and prepping the material for selling. This example is based on year end taxes - but can really be applied to any time frame - Any inventory cost listed here- is what you paid for it. Inventory value (unrealized gain or loss) - is a separate discussion. to calculate COGS - take------ last years inventory (what you paid for comics) add any new purchases made this year add supplies (bags and boards) add grading/pressing fees from this - subtract end of year inventory (last year inventory + buys MINUS the cost paid for anything sold during the year). ________________________________________________________ so - gross income = gross sales - COGS. Looks great - but now we have EXPENSES....... Expenses: Outbound shipping shipping materials ebay fees paypal fees office suppliers advertising (business cards) legal fees storage (shortboxes) etc..... NET profit = gross profit - expenses Thanks I'll check that out and yes the profit that I gave was after all expenses and I always count them in so that I don't think that I make more then I really do. Whew! I'm glad I just collect comics, this sh-t is hard. Not sure if that's a joke or not but it'll take me a bit to learn this as well. Link to comment Share on other sites More sharing options...
oakman29 Posted October 21, 2015 Share Posted October 21, 2015 You're setting accounting principles back centuries. I think part of it---- was with what is considered "inventory"..... He was using the paid amount - you were asking for overall value estimate. Both whorthwhile numbers to know. Gabriel - that first set of numbers you gave sales of ~ 5K, made about 1300 --- this is not a bad return. BUT make sure this is a real number minus all expenses. For any of the calculations - you need to keep track of everything. Get into the habit of doing this - will only help in the long run. For any of the info below - realize that this is based on US tax law and an individual running this as a side or lower end business (for US peeps - filing schedule C). This is a very simple way of looking at a business. A larger business with many other expenses - usually have to operate under more sophisticated rules and guidelines, but hopefully this will help you. It is based on "cash based accounting". This simplifies a lot of the record-keeping. Simply put - whatever money comes in and out is accounted for at that time. Also - it REALLY helps to have ONE credit card and ONE paypal - that is exclusively used for the business. I can download my ccard transactions at the end of the year - and pretty quickly sort items into the right categories. so Gross sales - cost of goods sold (COGS) = gross income/profit. Gross income - expenses = net income. Net income = the one we all want. With the exception of taxes - this is the profit in your pocket! ___________________________________________________ Gross sales = what you were paid. Easiest to throw shipping in this as one sum (as it can be accounted for separately). Ebay makes this pretty easy - you have a transaction for $500 including shipping - they send this over as one payment - then bill fees and shipping separately. This helps a lot. ___________________________________ COGS: This is everything associated with procuring and prepping the material for selling. This example is based on year end taxes - but can really be applied to any time frame - Any inventory cost listed here- is what you paid for it. Inventory value (unrealized gain or loss) - is a separate discussion. to calculate COGS - take------ last years inventory (what you paid for comics) add any new purchases made this year add supplies (bags and boards) add grading/pressing fees from this - subtract end of year inventory (last year inventory + buys MINUS the cost paid for anything sold during the year). ________________________________________________________ so - gross income = gross sales - COGS. Looks great - but now we have EXPENSES....... Expenses: Outbound shipping shipping materials ebay fees paypal fees office suppliers advertising (business cards) legal fees storage (shortboxes) etc..... NET profit = gross profit - expenses Thanks I'll check that out and yes the profit that I gave was after all expenses and I always count them in so that I don't think that I make more then I really do. Whew! I'm glad I just collect comics, this sh-t is hard. Not sure if that's a joke or not but it'll take me a bit to learn this as well. No, mo joke I don't sell comics for a reason. Link to comment Share on other sites More sharing options...
uchiha101 Posted October 21, 2015 Author Share Posted October 21, 2015 You're setting accounting principles back centuries. I think part of it---- was with what is considered "inventory"..... He was using the paid amount - you were asking for overall value estimate. Both whorthwhile numbers to know. Gabriel - that first set of numbers you gave sales of ~ 5K, made about 1300 --- this is not a bad return. BUT make sure this is a real number minus all expenses. For any of the calculations - you need to keep track of everything. Get into the habit of doing this - will only help in the long run. For any of the info below - realize that this is based on US tax law and an individual running this as a side or lower end business (for US peeps - filing schedule C). This is a very simple way of looking at a business. A larger business with many other expenses - usually have to operate under more sophisticated rules and guidelines, but hopefully this will help you. It is based on "cash based accounting". This simplifies a lot of the record-keeping. Simply put - whatever money comes in and out is accounted for at that time. Also - it REALLY helps to have ONE credit card and ONE paypal - that is exclusively used for the business. I can download my ccard transactions at the end of the year - and pretty quickly sort items into the right categories. so Gross sales - cost of goods sold (COGS) = gross income/profit. Gross income - expenses = net income. Net income = the one we all want. With the exception of taxes - this is the profit in your pocket! ___________________________________________________ Gross sales = what you were paid. Easiest to throw shipping in this as one sum (as it can be accounted for separately). Ebay makes this pretty easy - you have a transaction for $500 including shipping - they send this over as one payment - then bill fees and shipping separately. This helps a lot. ___________________________________ COGS: This is everything associated with procuring and prepping the material for selling. This example is based on year end taxes - but can really be applied to any time frame - Any inventory cost listed here- is what you paid for it. Inventory value (unrealized gain or loss) - is a separate discussion. to calculate COGS - take------ last years inventory (what you paid for comics) add any new purchases made this year add supplies (bags and boards) add grading/pressing fees from this - subtract end of year inventory (last year inventory + buys MINUS the cost paid for anything sold during the year). ________________________________________________________ so - gross income = gross sales - COGS. Looks great - but now we have EXPENSES....... Expenses: Outbound shipping shipping materials ebay fees paypal fees office suppliers advertising (business cards) legal fees storage (shortboxes) etc..... NET profit = gross profit - expenses Thanks I'll check that out and yes the profit that I gave was after all expenses and I always count them in so that I don't think that I make more then I really do. Whew! I'm glad I just collect comics, this sh-t is hard. Not sure if that's a joke or not but it'll take me a bit to learn this as well. No, mo joke I don't sell comics for a reason. Ah I see I think that hard parts will be learning the accounting and taxes part of comics but if this turns out to be a good side venture I'll be happy with that too. Link to comment Share on other sites More sharing options...
