Why do all Resellers f*ckup their accounting in the first year?
My guess is that because it’s boring AF to most people, and if you’re one of the few that likes sheets and number kudos to you.
Either way, it is best to start tracking and recording everything from the beginning!
Take pics of all your receipts with an app or Evernote and track your miles with Mile IQ.
Another thing that turns people off is the excess of Amazon FBA & MF metrics.
That’s why we’ll be covering everything that you need when it comes to accounting. From when you’re starting to when it’s time to file taxes.
Disclaimer this post is for informational purposes only and should not be taken as legal, financial, or tax advice.
First Let’s Get Your Accounting Mindset Straight
Uncle Sam ain’t nothing to f*ck with, making accounting a necessary evil.
If you plan on growing your business, IRS audits are a thing in the big league.
On a more personal level, you’ll want to track everything from the beginning, to see whether you’re doing a good job or not.
Without analytics on everything, you’re Reselling business will never grow as fast as it can.
Since analytics are a bit easier to get pumped on, let’s start with that.
The Best All in One Analytics Tool
The Book Flipper has created the dopest spreadsheet for Amazon Sellers.
Don’t let the name The Book Flipper deter you inventory is inventory. If you sell anything on Amazon, you’ll love this spreadsheet.
A few of my Mastermind Ninjas who only do RA (retail arbitrage) at big box stores whip the heck out of this sheet.
On top of that, Caleb’s sheet makes quarterly sales taxes a five-minute job.
Other legit benefits include:
– A one-time payment so you never get pimped for updates.
– It’s super easy to read.
– In-depth how-to videos on everything that the sheet can do.
If you’re serious about Reselling and have the capital don’t sleep on this sheet and snag it ASAP.
Inventory Lab’s Accounting Features
Yes, Inventory Lab is also a listing Software, but it does have legit accounting features.
Well TBH, it gives you everything that Caleb’s sheet does; it’s just on a better-looking interface.
The reason why I don’t mention Inventory Lab much in my videos is that when it comes to listing software, it’s nowhere near as fast as Scanlister.
Since I’m primarily a bookseller, speed is the name of the game.
I also won’t dabble with subscriptions when I can pay for both Scanlister and Caleb’s sheet once.
On the flip side, tons of people still love Inventory Lab because it is a one-stop-shop. You create your shipments, sticker, and track everything in one place.
Hardcore big box store RA sellers like @jake._diego on IG are obsessed with it.
If you want to test it out for yourself, here is a 30-day free trial.
You Need a CPA… Ecom CPA is the Best
Don’t let Uncle Sam catch you, slippin! Always hire a CPA, unless you’re one yourself.
Check out this video so that you can see how frustrating the tax situation is:
I always recommend Ecom CPA, because they specialize in eCommerce (AKA Amazon).
Giving you peace of mind that everything is being done right by people that do this every day.
An everyday plain vanilla account won’t get the job done.
Ecom CPA has three price levels, depending on where you’re at with your business.
But still take advantage of the free consultation and negotiate a deal with them.
As a Reseller low-key, negotiate everything!
Don’t procrastinate on this one and give Ecom CPA a call today.
Amazon & Taxes 4 Things You Need to Know
- Always check seller central for information on Amazon seller taxes.
Amazon seller tax information can be updated at any time, like everything else in a Reseller’s day-to-day.
So, make sure to give Seller Central a quick peep every time tax season comes around.
- The 1099-K form will save you from gray hairs.
Your CPA will adore you if you give them a 1099-K because it has almost everything that the IRS needs from the Amazon side of things.
The only caveat is that you have to qualify to get one by:
o Hitting more than $20,000 gross sales that year
o Running more than 200 transactions.
Don’t worry if you’re reading this blog post; you’re already doing what others won’t. Hitting those numbers will be a walk in the park.
And please don’t let this deter you from starting your reselling journey towards the end of the year.
There is no better time than now. Know that if you have more than 50 transactions, you will have to report it to the IRS.
- Sales Tax is a biggie
If you don’t want to pay taxes on what you flip, you’ll need to get a tax license/certificate for your state.
When you get your tax cert, you will have to file monthly, quarterly, or yearly sales taxes.
With Caleb’s sheet, this won’t be an issue, so don’t trip.
- Deductibles are the best
Being self-employed means that you can write off all your business-related expenses.
Some common examples are:
o Courses & Training
o Packing Supplies
You get the drift, verify all of this when you talk with Ecom CPA.
Get it done!
The sooner that you get your accounting in check, the smoother that your reselling journey will be.
If you’re still not motivated to get it done set up a reward or punishment for not getting it done in time.
Treat yourself to a brewery tour, or a day doing your favorite hobby.
Or tell a friend that if you don’t do it by this date, you’ll donate $100 to the person that you dislike the most.
Now get out there and demolish your bookkeeping!!!
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