Friday , 23 August 2019
Tax time will now be made easy for any artist, crafter, or anyone that makes handmade goods. When it comes to bookkeeping, we’ve heard the requests of our community, and developed a one product solution to all of the handmade community’s bookkeeping needs that is specifically designed for the handmade artist and is very affordable.

The Handmade Bookkeeping Spreadsheet 2.0 – Making Tax Time Easy

 

 

Tax time will now be made easy for any artist, crafter, or anyone that makes handmade goods.   This is a huge breakthrough in accounting by none other than Timothy Adam, creator of Handmadeology, (The Science of Handmade) website.

Tim says, “When it comes to bookkeeping, we’ve heard the requests of our community, and developed a one product solution to all of the handmade community’s bookkeeping needs that is specifically designed for the handmade artist and is very affordable.”

This metal artist turned online networking expert (who also sells on Etsy ) has been encouraging handmade artists to unite and promote one another.  One of the questions the community was commonly asking Tim, was how to easily organize their expenses and revenues for tax time.

“There is really nothing out there on the market comparable to this, because normal tax accounting software does not have these specialized categories “, explains Heather Lewis, of Mattie Reid Designs.

Tim felt the same needs of the community, and being a handmade artist, developed the software.  He says, “In many ways, it rivals QuickBooks, but cuts out the nonsense, complexity, and higher costs. This system has also had developmental input from a CPA that is a small business expert and has “audited” the functionality and reporting—you know you are getting a product you can rely on. “

The Handmade Bookkeeping Spreadsheet allows you to track data including:  raw materials, finished inventory, monthly sales and expenses, marketing data, cash, banking, or PayPal accounts, IRS mileage, sales tax, bill tracking, Cost of Goods Sold Calculator, contacts, and social media statistics.  This is just a few highlights.

The data entry is user friendly and easy to understand. The reporting is created automatically! You can choose from 30-some monthly graphical reports or 150-some yearly reports.  Let’s just say this is fun to play with and has many options, customizable to your own needs and logo/design.  The best part in my opinion is the fact that you can customize your books to your needs via a custom set up function. Not all artisans have the same expenses, so you can tailor the program to fit your needs.  Not to mention I love playing around with the colors.

handmade bookkeeping spreadsheet

Tim explains, “Since this bookkeeping system is based in spreadsheet form (Microsoft Excel), it is also fully customizable to cover any unique needs of your business – you can also manually change the colors to match your business brand or add your logo for a personalized touch.  If you are overwhelmed about the bookkeeping responsibility of your handmade business—don’t sweat it! There are detailed instructions as well as bookkeeping hints and reminders specific to each transaction throughout the tool.”

Here are some other key points what I verified during product review, I’m rating them from one to ten, ten being the best:

Compatibility (10): This product can be used with a PC or a MAC if Microsoft Excel or Open Office is installed.  Instructions are easy to understand and you don’t have to be a rocket scientist.

handmade bookkeeping spreadsheet

Navigation /Set Up / East of Use (10) : It’s easy to input and choose reports accordingly. You don’t have to know a thing about spreadsheets to use this because the software navigates like the web.  There are what Tim calls, “Visual numerical stories” which are graphs that make financial trends, warning signs, and success easy to recognize for your business.  I particularly like the idea of entering data and importing it via a CSV file (comma separated files, these are an option for the Etsy seller), and letting the software do the rest.   One may need to “copy and paste” key information, import or, choose from drop down menus, but some sections are automatically updated when you complete other areas.  Tim did indicate that the goal was to make bookkeeping easy, so an artist could focus on the business side of selling and not the paperwork side. A little data entry and this turns into a huge time saver.

Micro-Tracking (10+):  I find this amazing that a jewelry seller can easily track their beads and raw supplies to get organized.  You can now micro-manage your business in a quick and easy way.  This is important when dealing with costs and profits.

Tax Information / Security (10): The (COGS) Cost of Goods Sold functionality which makes filing a Schedule C easy. Tim had a CPA review the software before selling it.  Since you are using your own program essentially, you aren’t on a third party site nor do you have to trust your data or personal information with any other sources.

Multiple Etsy Shops / Selling in Other Venues (10+):   No worries if you sell on Etsy and have more than one shop. A supply shop and handmade shop can still work perfectly.  If you sell on Etsy and elsewhere, it still works. If you aren’t even an Etsy seller, this program still works. One can choose to import files or do data entry, either way this is a huge time saver. You have two options with this software.  You may choose to combine all your selling venues in one which you then could have total expenses and total profits shown for simplicity, but still see the unique source or stream of where the revenue came from.  The second  option is to simply “separate” your selling venues and keep multiple versions of the spreadsheet (one for the shop, one for the craft show, one for Zibbet, one for Artfire, one for Dawanda….)  I have to say I am truly amazed.

Cost (10):  This is very affordable, and you only have to buy once and use the same program year after year (no annual fees or costly upgrades like some online bookkeeping systems). The Handmade Bookkeeping Spreadsheet ranges in price based on the bundle you choose. I chose to review the Savings Package priced at $56.  This package includes the Bookkeeping Spreadsheet, Bookkeeping Tips – FAQs – and Know-How , and Handmade Bookkeeping Spreadsheet Cheat Sheet.  Quickbooks is priced anywhere from four to five times the cost of Tim’s software and does not come with the tips, tricks, and cheat sheet.  Why buy a huge accounting program if 90% of it is not going to be used for the needs of your business?  On a side note, it’s eco-friendly. No CD’s or paper waste. Upon receipt of payment, this bookkeeping system will be emailed to your PayPal related email account.

I wasn’t paid to write this review, and I don’t have a free copy of the software. As an artist I want to say that this software is a must for any handmade artisan and an answer to the handmade community. Don’t take my word for it, the HandmadeologyBiz store sold many copies on Etsy the first day it hit the shelves.  You can go there to check out the various options, and read Handmadeology for any special savings coupons or offers related to the software. 

Related Posts Plugin for WordPress, Blogger...

8 comments

  1. Hi! I bought the bookkeeping spreadsheet and it really is very impressive (I love all the places I can hover my mouse for more info, what attention to detail!) It’s exactly what I needed right now and I’m really really excited about it!!!

    I’d like more info about a couple of things, though. I have 200+ items in my shop and tons of supplies on hand. I need help figuring out how to make a smooth transition to my new bookkeeping system.

    First, the instructions say to not record cost of materials in the expenses area, so from where are these added in to show the IRS this was money the business payed out? Is that from the COGs column on the inventory sheet? If so, then since I’m starting with 2011, should I only enter in inventory made in 2011 or all of the inventory I have on hand?

    Second, I have a lot of supplies on hand, too, not all purchased in this year, so is it imperative to take inventory of my supplies and enter that in to the raw materials sheet?

    I’m really excited to get started with the spreadsheet but I’m feeling a little paralyzed right now, like I don’t know how to begin! (I did read over the cheat sheet and FAQs about bookkeeping, but it’s really this moment of transition that I’m having trouble with.)

    Any guidance would be much appreciated!

    • 1. How do I start bookkeeping when I’m in the middle of a year?

      First, it can be done, and it will probably be the most difficult time of bookkeeping for the year. After you get it set up, it will become easier. First, find all your receipts or proof of transactions. Then start using these to back fill activities during the month. Raw materials and finished inventory will be the hardest items to recreate. Remember, to only recreate what you have proof of occurring. If you don’t have the proof—don’t record it in the bookkeeping system. Don’t let this initial phase of bookkeeping discourage you. Most things that are worth a value have a cost. Once your bookkeeping system is up and running, it will go more smoothly. Another option if you have not saved any receipts. . . . Make sure you record all of your sales revenue for all previous months and just skip out on the expenses. This will not be accurate, but it at least gives you an easier way to start. Your taxes will be higher because you record no expenses that occurred. Sometimes initial raw material levels are so “out of control” that you cannot recreate this. Learn from your mistake and make good efforts to record these going forward.

      First, the instructions say to not record cost of materials in the expenses area, so from where are these added in to show the IRS this was money the business payed out? Is that from the COGs column on the inventory sheet?

      Yes, material costs would show up eventually in the COGS section.

      If so, then since I’m starting with 2011, should I only enter in inventory made in 2011 or all of the inventory I have on hand?

      First, only enter what you have receipts for or proof for the IRS. Regarding finished inventory–yes, enter all of it into the spreadsheet.

      Second, I have a lot of supplies on hand, too, not all purchased in this year, so is it imperative to take inventory of my supplies and enter that in to the raw materials sheet?

      Regarding, raw materials, enter everything into it that you know the costs of (and have never expensed with the IRS).

      The bottom line answer is it takes a lot of work starting out, but will be worth it in the long run.

      Hope these help,

  2. Brilliant performance! I especially like the thoughts “This is really nothing out there on the market comparable to this, because normal tax accounting software does not have these specialized categories”. Thanks!

  3. Normal tax accounting software stinks for the crafter. It is geared to the big business. Trying to figure out how to add BEADS and PAINT to my quickbooks was so unsuccessful that I went out and spent more money buying Quicken becuase I was able to easily manipulate the catergories. Then I was irate with quicken because it kept trying to connect to the internet for updates and wants me to link my bank account information. I now have two high priced accounting software packages that I can’t understand or use. Thanks for the review

  4. I’m in the same shoes as Jenny. I’m trying to get started on this but have a lot of questions also. Maybe given a little more time I will be able to figure it all out. If not I will be asking for help.

  5. I found it a bit challenging at first but overall you can decide how much to add, or how difficult to make it. I think it’s good for basic and advanced users alike. Thanks for offering this because tax time is here!

  6. Such a great concept! I would bet if you have this completed, your tax accountant will love you come April 15th :)

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>