Craft business tips
Whenever you start a home craft business or any business you must take care of the bookkeeping and legal side of the business first. I am neither a lawyer nor an accountant so these are just mycraft business tips. Here I will explain to you how I kept my books simple but accurately.
Craft business plan
For as many years as I can remember I have used a book system that is a simplified monthlybookkeeping record. You can pick one of these up in any office supply store.The book I use has everything listed expenses, income, supplies, utilities and such. All you needto do is save your receipts and fill in the blanks. Each month you carry your totals forward.At the end of the year all you need to do is just take the last page of the book completed to youraccountant or tax repairer and you are all done. We did not need a lawyer for my business so I amnot much help with that.
Taxes and License
To get your license, go to your local courthouse. A state tax number is needed when you buy wholesale. Each state is different so you may notneed this but if you do you can receive it from you state capital and now you can also apply right online.I know this is the most boring and tedious part of a craft business but it must be done and thesooner you deal with it the better off you will be. Once you have it set up it will only take acouple of hours a week. Pick one day and the first thing you do is your bookkeeping on thatparticular day. You will feel so much better when you have this under control.I kept a folder where I put my receipts, invoices and order copies. Then on my bookkeeping day Ijust pull out my book and the folder of paper work and fill in the blanks. I file everything and nextthing I know I am back to doing the fun stuff, filling the orders.
Home Craft Business Insurance
You may want to check into insurance for supplies, equipment and inventory. Home insurance may not cover these items because it is a business expense. Of course it will not cover the inventorywhile traveling or displaying. Call your insurance agent as he can advise you on this matter.
Linda Spangenburg draws on 35+ years from her knitting and crochet business experience, both as a teacher and craft business owner. She is the author behind Looney for Looms where you will find patterns for loom knitting. We hope you found the information here inspiring enough to try a craft homebased business? You can find more free information about knitting and crochet for profit at http://www.knitting-n-crochet.com
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