If you're selling on Etsy and you don't yet have your accounting and bookkeeping act together then you really want to tune in (or download) this episode as soon as possible because it's all about accounting best practices for Etsy sellers... And then some.
Sarah Korhnak is a Certified Public Accountant (CPA) and the brains behind SmallBusinessSarah.com where she "takes the mystery and misery out of your small business tax and accounting questions..." 🙂
I consider Sarah a friend to the podcast because she's been on in the past when she was one half of the dynamic Brilliant Business Moms duo with her sister Beth Anne. That was way back in Episode 32 in July 2014. Wow... That was literally 3 years ago!
These days, Sarah is focusing on helping small business owners get their affairs in order when it comes to accounting and bookkeeping and that's primarily what we talk about in our convo today.
Big thanks to Wren Brown of the Etsy shop Mad Party for asking a question in the Etsy Conversations Facebook group (if you're not in the group already, hop over and join us... there's a link to it down below) which prompted me to get on the ball in inviting Sarah to come back on and answer these burning accounting questions that Wren and many other Etsy sellers have. And thank you also to everyone who submitted questions for Sarah!
Sarah starts off with a very in-depth breakdown of three of the most popular accounting software systems available for Etsy sellers on the market right now, and believe me, Sarah gets into a LOT of detail about the pros and cons of each... I love that she doesn't just give us the information based on what each one's sales page or sales material says, but she has actually signed up for each one and put them to the test personally.
She reviews QuickBooks for Etsy, GoDaddy Accounting, and QuickBooks Simple Start (links to each one are in the resource section below).
You'll also hear Sarah's answers to the following questions and thoughts on the following topics:
- Accounting and bookkeeping basics for Etsy sellers
- Common accounting mistakes that you might be making as an Etsy seller or creative business owner
- Can I do my own bookkeeping and what first steps should be taken to get one's accounting in order?
- What does one need to do to officially transform a hobby into a legitimate small business?
- Hobby income vs. business income... What does the U.S. government have to say?
- How do I know if my shop needs to file taxes?
- Is there limit set by the government on the amount of sales you can make that will propel you from "hobby" to business?
And finally, Sarah shares some tips on how she manages her time as both an Etsy seller and a small business owner as well as some specific tips and advice for other Etsy sellers and creative business owners.
Sarah and I would love to keep the discussion going so please feel free to reach out to her directly if you have a specific question for her or need help with your accounting and bookkeeping... This is what she was trained to do and does now for full-time folks, so please don't be shy about reaching out to her.
And of course, I'd love it if you left a comment below as well with your feedback on this episode.
- QuickBooks for Etsy
- GoDaddy Bookkeeping
- QuickBooks Simple Start
- Sarah's article - Best Accounting Software for Etsy Sellers - it's complete with video walkthroughs and everything!
- Website: SmallBusinessSarah.com
- Email: SmallBusinessSarah [at] gmail [dot] com
- Etsy shop: The Amateur Naturalist
Final note: my apologies to those who live outside the United States... A lot of what Sarah and I talk about pertain mainly (if not only) to residents of the US. In the episode, I promised to find similar resources for non-US residents and you have my word that I am working on it still. It's unfortunately not as easy as I thought especially because tax laws around the world are vastly different. Please bear with me.
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For more help growing your Etsy-based business, check out these resources: