Jewelry accounting, or keeping track of your business expenses is a very important part of running a home business.
You may also want to review our section on Home Business Help: When to Consult with Licensed Professionals.
Jewelry Accounting Expenses
The following is a general breakdown of expenses you’ll have to keep track of.
Please consult with your accountant or CPA on how you should approach keeping track of these business expenses.
Supplies: This covers all the materials you need to make your collection: beads, stringing material, glass, metals, resins, etc. It does not include tools and equipment you use to make your work. You should also note that when it comes to tax time, you’ll have to do an inventory of what you didn’t sell, and that figure gets carried over into the next year as income. Again, please consult with your CPA on how to approach this aspect.
Equipment: All equipment used for making your collections, such as kilns, torches, hammers, pliers, beading looms, etc. Bigger ticket items are sometimes expensed over a number of years, and again, this is something you should talk over with your CPA.
Licenses: All fees for business and vending licenses.
Leases: The amount you pay for equipment leases such as credit card machines, and tools.
Merchant Services: Your business banking account, credit card processing fees, PayPal transaction fees.
Communications: Cell phones, cellular credit card processing, voicemail services. May also include website service expenses and domain registration.
Show Fees: Amount you pay to apply for, sell at, and any commissions you pay to craft show promoters.
Office Supplies: Things that you need to keep your home based business office running like paper, ink, pens. May also include packaging materials such as bubble wrap, gift boxes, ribbons, bows, trade magazines, etc.
Shipping: Costs you incur to ship your merchandise to wholesale and retail customers.
Rent: If you have a work space set aside in your home, you can deduct the percentage of that space from your total living space as overhead. Or if you rent studio space to do your work, you can deduct the full amount of the work space rental. Consult with your accountant on how to do this and if you are able to deduct a percentage of utilities as well.
Healthcare Premiums: If you are self employed and pay for your healthcare premiums out of pocket, you may be eligible to write off the cost of your monthly premium. Consult with your tax professional for details.
Jewelry Accounting Software
While there are many accounting software available to small business owners, the one that is most widely used is Quickbooks Pro by Intuit.
Quickbooks currently has two options: a scalable cloud accounting platform that grows (in cost and functionality) with your business that you pay a monthly fee for, or a desktop version, Quickbooks Pro.
The desktop version, though, offers full functionality for a larger upfront cost. Features include invoicing, syncing with bank accounts, inventory management, and customized reports you will need for your accountant. It also has tutorials to help you get started, from creating invoices, to recording expenses.
List price for Quickbooks Pro is $249, but you can get it for 30% off if you purchase through Amazon Downloads, available for either Mac or PC Users.
Discounted Accounting Software