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My Small Business: Spud Wood Works #3: Accounting, we all love to hate it...

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Blog entry by Ethan Harris posted 02-21-2013 02:37 PM 1607 reads 0 times favorited 8 comments Add to Favorites Watch
« Part 2: Spud's first Direct Sale to Retail! Part 3 of My Small Business: Spud Wood Works series Part 4: Slow and steady wins the race... If you can stand it. »

Hello Readers,

It sure has been a busy time for me, after my direct sale to The Cornerstone Bookstore I recieved several orders which really gave me quite a time at making sure I had the time to complete everything. In the end I did, and I finally found the right handling time that would work for both me and the customers.

I’d like to also draw attention to accounting… For some, this process can be daunting and tedious. But I suggest for anyone who is going to own a business, that they better set up an accounting process at the beginning! Because of my background in IT, I had a intermediate knowledge of how to use excel and the formulas within to make my accounting process as smooth as freshly sanded end grain cutting boards… Currently I account all sales for outside and inside my state (you don’t owe sales tax on internet sales out of state), all customer information, customer trends yada yada and a whole lot more.

Take a look at a snapshot of my accounting sheet from a few weeks ago:

I have been able to turn this into a fun process and I highly suggest (if you can’t make your own) to get accounting software of some kind. I really like mine because I am able to customize it to myself. Well my child is tearing through something and I must go.

Ethan

-- Ethan, CT: Check out my Small Business at http://www.spudwoodworks.com & also follow me on twitter https://twitter.com/Ethan_Woodworks



8 comments so far

View Ethan Harris's profile

Ethan Harris

300 posts in 802 days


#1 posted 02-21-2013 02:43 PM

added Trend model snapshot

-- Ethan, CT: Check out my Small Business at http://www.spudwoodworks.com & also follow me on twitter https://twitter.com/Ethan_Woodworks

View JesseTutt's profile

JesseTutt

804 posts in 768 days


#2 posted 02-21-2013 03:22 PM

I started with custom spreadsheets but I was always concerned that I may not property be accounting for all of the accounting rules so I switched to QuickBooks. Now I worry that I am not properly entering the data correctly. Sounds like it is a “me” problem and not the software.

-- Jesse, Saint Louis, Missouri

View Monte Pittman's profile

Monte Pittman

14226 posts in 996 days


#3 posted 02-21-2013 04:00 PM

Your organization is far superior to mine. Good job.

-- Mother Nature created it, I just assemble it.

View DocSavage45's profile

DocSavage45

5020 posts in 1500 days


#4 posted 02-21-2013 05:26 PM

Eathan,

On the money! LOL! Sounds as if you have a lot going? Your technical skills will aide you. Hope you also have product?

Jesse, You may need to get some accounting advice? LOL! I actually learned more about doing business( or relearning?) by exploring marketing, and management of a woodworking business. You can use turbo tax for small business to go with quicken? Has information available. Been using it for years. Need patience, and persistance to get it in order.

Monte,

You already are a productive guy with product, and your last blog was quite a story.

For all of us, it is important to know the IRS rules? They have changed over the years,and small business like mine seem to be getting less of a break?

Hopefully I will eventually have marketable products LOL!

-- Cau Haus Designs, Thomas J. Tieffenbacher

View Natalie 's profile

Natalie

366 posts in 624 days


#5 posted 02-22-2013 03:58 AM

Ethan, Congratulations on selling your stuff! Thats great, now get a life. You sound like a nice guy, but maybe a bit of a sicko if you are that into accounting. (Humor intended).

Okay, I’m a bit jaded. I managed my former husband’s business and struggled with that job for 16 years! I kept all accounts balanced to the penny, was the star customer of our tax accountant, and used Quick Books like a pro, but it was the bane of my existence.

Skip ahead 10 years, and I am now running my own small business (not selling wood projects unfortunately). I use quicken to record expenses which I tally up from my credit card statement, and record all payments in a spiral ledger, (ya know, on paper). If I get any busier than I am now, which I guess is a good thing, I will have to break down and re-learn Quickbooks, but I am so dreading it. Give me wood and chisels any day! In fact, maybe I’ll just hire a bookkeeper.

-- Natalie - My mind is like a bad neighborhood, I don't like to go there alone.

View Ethan Harris's profile

Ethan Harris

300 posts in 802 days


#6 posted 03-11-2013 02:12 PM

DocSavage45:

I am developing a wider range of products for sure. But for right now you can see what I am offering on my Etsy Shop: Spud Wood Works

Natalie:

I must account, I need to account… Yea its weird I know, but its like watching my business grow, I think that is the most addictive part…

-- Ethan, CT: Check out my Small Business at http://www.spudwoodworks.com & also follow me on twitter https://twitter.com/Ethan_Woodworks

View DocSavage45's profile

DocSavage45

5020 posts in 1500 days


#7 posted 03-11-2013 04:54 PM

Checked it out. Good luck. Maybe some wood pull toys, or cars and trucks for totts? Oh yeah make sure nothing splinters . LOL! Do you have liability insurace?

wooden puzzels (sp?) ?

-- Cau Haus Designs, Thomas J. Tieffenbacher

View helluvawreck's profile

helluvawreck

15814 posts in 1524 days


#8 posted 03-11-2013 07:12 PM

Time is always a problem. I have a business setup but haven’t done anything with it yet. I want to get my shop finished first. What I plan on doing for this is to make sure that I keep up with the details on paper by making sure that I keep up with the invoices, Bls, and all other relevant info in an orderly manner so that it can be turned over to an accountant once a month. My wife will help me with this and if your info is turned over in an organized manner to the accountant they can very quickly keep it organized in the proper way for a reasonable price including monthly reports. Most every relevant piece of data usually involves a piece of paper so it’s a matter of keeping up with each piece in an orderly manner. However, my accountant knows far more than I do what to do with the data and there are also other ways I can rely on him as well. Maybe this is overkill for a small business. I’m really just shooting towards making what income the SS allows you to earn during retirement.

helluvawreck aka Charles
http://woodworkingexpo.wordpress.com

-- If a man does not keep pace with his companions, perhaps it is because he hears a different drummer. Let him step to the music which he hears, however measured or far away. Henry David Thoreau

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