This past year was the first year that I was fortunate enough to work from my home. Working from my home has been a wonderful change for both personal and professional reasons. The only thing that caused a slight issue was the tax filing changes that I had to endure. The office in my home was now considered a tax deduction. I had to get some help learning how to deduct the things that are allowed on my federal taxes. If you are new to working from home and have a home office, this blog can help you learn what you need to know before tax time rolls around.
If you have recently starting making jewelry out of your home and selling it, you might not think your new at-home business needs a professional accountant. However, here are some ways that a small business accounting expert can be beneficial for your jewelry business.
Set Up Business Structure or Type
While you might be happy selling your pieces as you make them, if you plan to treat this endeavor as a business, the first thing you need to do is to choose the appropriate business structure. You might decide to operate as a sole proprietorship or you might instead choose to be a limited liability corporation--or LLC. Which do you choose? That's where an accountant comes in.
A reputable accountant can explain to you the differences between the two types and help you analyze your business goals to see which structure is best for your particular business.
Help Your Business Finances to Stay Organized
Because you might not be sure how to properly separate your business records from your personal records, an accountant can help you set up a record-keeping business system that helps you stay organized so that it is easier to handle finances and taxes. They will tell you what you have to do to stay on track. For instance, you will likely have to turn over gas and other receipts each month so that they can be logged, sorted and saved.
This kind of organization can be especially helpful as more people buy your jewelry and you don't have time to do accounting tasks or tax preparation. Your accountant can keep track of what taxes need to be paid and when, so that you can focus on making your jewelry and other things.
Notice Spending Trends
Because your business accountant will see a lot of receipts from you, they will be able to notice trends that you might not otherwise take note of. For example, they might notice that you are buying more blue beads than any other color. That information might help you realize that blue-beaded pieces are the affect how you price your pieces with blue beads, or it could give you an idea to have an entire promotion that centers around pieces that feature the color blue.
Now that you have some idea of how an accountant can help make your jewelry business strong, be sure to consult a few in your neighborhood (such as Waggoner Frutiger & Daub CPA's) to find one with small business experience. You will soon reap the benefits of their expertise.Share
17 December 2015