Thursday, January 10, 2013

EBay Bookkeeping Made Quick & Easy

EBay Bookkeeping Made Quick & Easy
By Janean Wilson
If you plan on selling items on eBay as a business, you will need to keep track of your income and expenses.
1. Save your Receipts.
When you buy inventory items to sell on eBay, always save your receipts.
You will need to record the cost of an item as a business expense.
2. Use Inventory Sheets.
An Inventory Sheet is a fill in the blank form for recording income and expenses for an item.
Begin each eBay seller transaction with a new Inventory Sheet.
Inventory Sheets are used to keep a permanent record of your sales transactions.
3. Accounting Software.
I began using Quicken to keep track of my eBay income and expenses.
After payment as been made, I use my Inventory Sheet to gather the information needed to make a record of income and expenses in my Quicken Register.
Use the date paid for your entry date.
Use your item number for the check number.
Each sale will require two register entries.
The first entry will show the total amount of money paid to you from the buyer.
This money will be recorded as a deposit.
For the Payee use "eBay item Sold", use this payee name for all sold item income entries.
Quicken allows your to split this money into different categories.
Make two categories called "Sold Price" and "Shipping and Handling".
For the memo, use eBay's item number and a brief description of the item.
The second entry will show the total expenses for the item being sold.
Use the date of payment for this entry.
Call this payee "Expenses" and record this as a payment.
Split your total expenses for this item into different categories as shown on the Inventory Sheet.
The running balance will be your net profit.
If you purchase office supplies make a separate entry and record this as a payment.
Supplies can also be split up into different categories.
This is as simple as it gets.
The Inventory Sheet is the key to making eBay bookkeeping quick and easy!

Inventory Sheets samples are available at my website []
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