Bookkeeping for EBAY Sellers TUTORIAL (EVERYTHING You Need to KNOW!)

[@Raikenprofit]

Hope everyone enjoys this video!!

[@carriechalkersmith6906]

Thank you for sharing this information. I have held back for years in starting any business because I knew that it is important to have a business license etc but the accounting part was always vague. And reading has been infective to finding the keys to setting this up. Your video is helping immensely! I will need to rewatch over and over till it sinks in. So thanks again!

[@sharonmiller5460]

How do you go about paying yourself from your business account?

[@onesmallstep8836]

I am! A wee Scottish mum trying to do things right xx

[@georgenieves4281]

This video is certainly an oldie, but a goodie. Brilliant Steve. Great advice. Thanks for keeping it REAL.

[@terryswenning9510]

Will the go daddy system know to initially set up the chain of accounts for independent resellers?

[@TexasPlugRiches]

THANK YOU!! So glad you are talking about the business side of reselling! I wish more channels would do this!

[@xfilesmanson]

What I'm really confused about is the cash vs accrual method for cost of goods. And whether or not I can immediately deduct my entire Goodwill purchase as a business expense.

[@waingirl]

I am confused as well. I have asked numerous resellers which method they are doing and how and when they are adding their sourcing purchases to their business expenses, and no one answers. It's really frustrating. I just want to know what the common reseller bookkeeping method is, so I can go in the right direction.

[@gedionsamuel2256]

@@waingirl Did you find the answer

[@12GAGE_tx]

Not sure if you ever found out and sadly I can’t be of much use as I’m still learning myself. But what I do know for fact is that the cash method is most commonly used by sole proprietors and small businesses so if you fall under one of those categories it’s probably the best method to go with. It seems the accrual method is based on projections which is why big company’s use it so that they are better able to provide information to their share holders on what earnings will look like on a quarterly or yearly basis. Hope this helps at least a little!

[@jochildress5003]

I am not a CPA and cannot give this advice. As a reseller, I find it easier myself to use the cash method because it’s only me and the accrual method means I’d have to spend a bunch of time keeping track of inventory. I’m not at the stage where I can hire anyone. So I claim all my cost of buying inventory in the year I pay it. This may mean that some years I don’t have a lot of deductions for buying inventory, but I’m willing to take that risk.

[@Rapunzel122-s9w]

I’m no CPAbut watch Mark Tew Not Your Dad’s Accountant. He’s awesome at explaining the difference between the cash and accrual methods. I do accrual because I want to do it the right way. If you inventory your suppose to do accrual. I like that I can write off the cogs when I sell the item. Why take a 100% when you haven’t sold it yet? I think spreading it out over time is the way that works best for me. I have over 20k in items and know I’ll be selling for years not just this year. Hope this helps.

[@loklie3226]

How do you track expenses for things you buy from garage/estate sales where you pay cash. Do you just write it down and they take your word for it?

[@OhmegadJT]

Well if you withdrew $400 and at the end of the day deposited your remaining cash, you’d get how much you spent that day on paper and not just your word. Put the date down of that whole transaction and you should be good that way if they ask to see proof, simply open your bank account and go to that date.

[@CAfromCA]

I'd ask for a receipt (receipts) and I'd bring my own paper.

[@Robert74450]

So far just selling items around our home all for a loss but thinking about doing more so glad I am watching

[@adammonahan687]

Yeah same here.... allegedly.. Lol just kidding.... maybe

[@jodiegrace2849]

You may think your strategy if you are selling for a loss. It would be better for you to donate the items as you are getting charged fees on eBay. Check you tubes on how to do comping to check what items are selling for and sold not just listed. Good luck in making a profit

[@GlenShoecraft-z4q]

You are the 1st person I heard actually talk about accounting software. I have been using quikbooks for 20 years with my ebay business and it makes taxes very easy to do. It takes me only a few minutes and I am done.

[@AnnapolisGirly]

I promised myself I would have everything set up in the new year, but (thankfully) things are going well so I need to start NOW. Thanks Steve!

[@evaaman1220]

now that GoDaddy is retiring :( which bookkeeping system would you recommend that will sync with ebay? something easy for a small business?

[@jonesy585]

Hey renk I just got my first quarterly ebay stament and I don't know what to do I made 834 dallors 27 transactions, could I wait till the end of the year to file my 1099 or do I have to file it every quarter? I do confused this is making me want to quit ebay what should I do , do I need to hire a bookeepr and how much would I owe the IRS for 800 of sales? Please help!!

[@mjloves28]

Can totally relate to the tax season nightmare.

[@flippinattics7236]

Thank you so much for the information. Wonderfully done. What about garage sale purchases? You don’t get receipts for that.

[@jochildress5003]

I understand the concept of separating things for business, but it isn’t always possible. For instance, I rent my apartment. A certain amount of my rent can be claimed on my income taxes for business. Ditto my car’s gas and upkeep. I cannot pay those things with my business account. Sometimes I buy something at the grocery store that I can use in my business and it’s in my grocery bill which I pay with my personal account. These expenses have to be added in separately. This is touched upon in the video by the time you get to cell phones and such. Anyway, it seems that once I’ve done all the work for the tax preparer, it’s easier to just do my own friggin taxes!

[@NickHazletonMusic]

Great advice. Another thing that people forget is that accounting services can be written off.

[@christinaanderson8195]

I got a free consolation from a CPA and found out what she needed and how it needed to be done. And because bookwork does not frighten me and I was already doing my bookwork as a self-employed housekeeper it just gave a new way I needed to do it. But because I still do more than one type of employment, I still use my CPA and have her do all the plugging in and whatever forms that are needed. I just make sure I provide all the figures that she needs to do it and I only got charged less than $200 to do it and I was done. I’d rather pay a few hundred dollars and have someone else do the forms and make sure it’s done right then to deal with it myself.

[@akshataskitchen.dotcom]

How do you report "cash purchases" for goods. Which don't have bills. Ex - Purchases at Estate/Garage sales ?

[@mttrav4043]

What about gas when going to garage sales can you add that to your expenses and how do you put this down for if you buy items at a garage sales

[@nightowl8118]

Im also curious about the gas and when using cash.

[@GaryRinaldi]

I think keeping track of mileage is more important than gas. I have mileage app I turn on whenever I go to sales or thrift stores.

[@nightowl8118]

@@GaryRinaldi might be a dumb question but how do you put a price on mileage to use for tax purposes?

[@nugsymalone1247]

You have to log your mileage, I believe theres a set % that they write off for taxes. As far as garage sales, you can write your own receipts and date them. Theres a video on youtube here that explains it, I can't remember what it is

[@featherston97148]

@@nightowl8118 IRS has set mileage rates. It was something like $0.51 but with the recent hike in fuel Im hoping it goes up a little.

[@onesmallstep8836]

Thanks for investing in others; you’ve a lovely heart and are helping other people and families to live a better life. I’m praying god blessed you for being a kindly soul!

[@Raikenprofit]

Thank you so much!

[@VideoSquirrel]

THANK YOU SO MUCH! This is my first year I made enough reselling to do taxes. Thanks to your video, I feel much better and not so scared. I am going to get help from a CPA who knows about reselling.

[@Raikenprofit]

Fantastic!

[@adammonahan687]

First year ebay actually sent you a 1099 you mean? Cause technically your supposed to claim any amount....

[@venuscruz6075]

Where I shop for inventory they only take cash, it is a small church............so how do I handle that.

[@jwstreasuretrunk]

Great video & great advice Steve. Unfortunately I put the cart in front of the horse & started my ebay business using a personal bank account, I kept receipts but never itemized them, slacked on doing taxes & 48 months later I got me a CPA and it took a week to sort out the mess I made. Lesson Learned the HARD way. Now Im doing it the right way & it is soooo much easier at tax time.

[@zaynehm2444]

What do you mean by itemized them ? The thing that I'm confused about is I'm about to be an ebay seller but I'm still working for another company, will I need to fill ebay taxes separately?

[@glendadavidrealtor]

Thank you for your time love this video . That’s totally me my first year in business and I’m all over the place 😩🤦🏻‍♀️ I’m 57 trying to get this right . How you manage to do your taxes the first year please advise.

[@nickibair999]

Hi Steve. Now is this video for someone like me that's just selling on ebay and Poshmark where as of now I am not rolling in the thousands of dollars or for the business aspect? I enjoy following your videos. I can see using the steps to help guide me once I am able to quit my other job and able to go full-time with reselling.

[@electronicjunky6940]

I've been studying taxes today for a new business and now I have a headache? Perhaps they should sell Tylenol next to Turbo Tax.

[@herilugo9059]

I have ebay income mix with my personal account and I’m about to hit 20k on eBay, I’m stressed out 😰, so how do I fix my problem?

[@glennharris3357]

Thanks for the video. I"m leaning towards using QuickBooks for my book keeping. When finding a CPA to do our taxes, does anyone have any suggestions on who to go through to do our taxes for Amazon and Ebay? I've heard people say that we need to do accrual accounting instead cash accounting?

[@marilynnhudson6533]

Hi! New subscriber here. I have a question about GoDaddy bookkeeping system. Can I link two eBay accounts to it. One is set up as a starter store. Also do you recommend using one bank account for both eBay accounts? Thanks!

[@zubairmemon5172]

Absolutely, you can as you use the drop-downs, you should be able to view transactions from just the selected account.

[@thetreasurehuntingboomer]

Thankyou i needed this ..im still doing pen n paper and keeping receipts messily off to go daddy now :)

[@JJ-ri7eq]

How do you like go daddy? Planning on signing up

[@iloooveyou222]

So let’s say you buy an item in 2021 and it doesn’t sell in that year, do you still deduct the cost of that? Or only when it sells? I’m just a little confused on how to go about it because I have bought some items in 2021 that haven’t sold yet

[@OhmegadJT]

From what I’ve seen, you only deduct it after it has sold. That’s also what the lady at HR Block told me.

[@zubairmemon5172]

You can only deduct it when it sold.

[@shanaanderson7058]

I was also wondering how you go about it when you buy wholesale boxes/bulk purchases

[@couponchicka]

I watched another video and it said the inventory is considered an asset of your business and then when it sells it becomes a cost

[@robertleon8629]

Great video, just started selling on eBay 7 months ago and so far so good. For sure going open a business account and go from there. Thanks for the tips

[@Raikenprofit]

You can do it!

[@camsellstoys]

Ngl this is helping me I didn’t know what I was doing when I started I was 16 just selling toys to buy more for my collection then I started making more money and got into a hole of depression I dropped out of school had nothing going for me told myself it would be easier to put a bullet in my head then to fix my eBay when u can’t sleep cause your worried about the next day and what’s to come really fucks u up in the head

[@oldtarheel73]

I am a tax professional and I’m trying to make sense of my client’s shipping and EBay fees. Can you describe how to find these in his Ebay account? Basically all I have is his 1099-K and a vague description of shipping and sales percentage fees.

[@jodiegrace2849]

Howdy eBay has a report function if they have a store that you can download in an excel format that shows the shipping and eBay fees. Ebay allows you to buy postage labels through them in Australia so if you only use eBay to post this will be on the report. EBay has listing fees, promotional fees and postage. I’m in Australia and I use Australia post business site to post my items so I will have to go through this to calculate my postage costs they unfortunately don’t have reports. If you look in eBay under fees it outlines the different fees so you may get a better understanding from their information . I pay for promotional fees as well which helps with sales but is separate from a listing fee or end value fee which is when it’s sold. Then I pay for a store each month. Auctions also have a different fees. Downloading the report is messy and has loads of columns you don’t need so it takes a bit of time to clean the report up. Hope this helps from an ex ato officer.

[@1991windsor]

Great video Steve. Quick question, when we separate our personal account from our business account how do you pay yourself a wage/salarary each month? Do you write yourself a check or transfer money from your business account to your personal account to pay your living expenses?

[@zubairmemon5172]

You can transfer as well, just you have to write remuneration in remarks.

[@dgh5223]

Last few years, I would wait until end of year to finally write down all my sales like a idiot until it took me several days to write them all down. Now I've learned my lesson by start writing them down as you sell them. My husband has set me up a spreadsheet on computer.

[@jodiegrace2849]

EBay has a reports function if you have a shop which you can export a report from.

[@uberjewish9466]

Damn dude, you explained things really well

[@tofythebear1641]

If you are looking to get serious into reselling as a profession. You will need bookkeeping and Inventory management as tools to succeed. When I first made the step to start this journey I just went around my apartment and sold anything I could find. Gaming System, Toys, Clothes and ended up with just under 400 dollars. I then Snowballed all profits into the business... and did that for 12 months solid. Reinvest your Profits please !

[@helpfulcommenter]

yeah no shit.

[@zelmabyrn2115]

A well informed video Steve and much needed. One doesn't see much from other resellers on this topic. This probably should be mentioned at least 2 or 3 times a year so many can get started off the right way. Question: Do you need to manually input your earnings from your separate checking account to GoDaddy Bookkeeping say from eBay, Mercari, or other platforms because how will GoDaddy know where the funds are coming from? Also, when starting up with any of these platforms, do you need to create a fictitious name or business like name for reselling? I have been taking pictures and setting up description as drafts in one of the platforms but haven't set up everything quite yet. Thanks for your help.

[@CantyReBuy]

This video was super helpful. Thank you!

[@virginiayappdiy]

That link for the go daddy book keeping doesn’t work

[@RelaxAndResell]

I haven't even watched this through yet but I really wish more resellers would talk to beginners about bookkeeping FIRST. Not how to buy stuff and make piles of things they don't know what they paid for.

[@JSC178]

Exactly! They never show how they keep track of what they paid at each individual sale. They just show themselves loading up their vehicle with all the stuff they bought that day all mixed together. Show how to go about keeping track of it so we know what to do!

[@lesliee3724]

I have done all the steps except using a accountant. I am stuck at a point and dont know what to do, so I just kinda gave up on bookkeeping. How do you handle inventory you already have, as far as listing it as cost of goods. I have tons of stuff ( well over 1000 pieces) that I have no idea what the cost of each one was. When first stetting up the books, how do you list this inventory, as a lump cost? If so, how does one come up with a figure?

[@CC-ed7od]

My goodwill has a list they give when you donate, it has items and prices on it which seemed high to me but it's a start. Somewhere the IRS has a "fair market value" statement to answer your question. In other words, it's what you expect to pay at a yard sale.

[@longboardluv2]

at garage sales you only use cash? then what?

[@quintoncarroll4828]

Why did you move on from Godaddy to QBO?

[@MD-eo2wy]

Yes same question

[@kollagebeats]

What about if you paid for things for the business in that tax year before you setup a business entity, can I just manually enter into Quickbooks as an expense?

[@audreyallsbrook7692]

Much needed info. Thank you!

[@erikvillagran163]

Thanks for the information. It was very beneficial.

[@richardzedman1160]

how dose this work if your buying all your stuff from garage sales you buy something for $20 then it sells on ebay for $50 say how do you claim the $20 purchase of the profit when they ask for reseat theres no paper work

[@jmcaparas8864]

Amazing video bro. Definitely having good bookkeeping can save you from stress during tax season. Especially now that tax season is coming sellers should consider having their books organized.

[@Raikenprofit]

So true!

[@cclovelacegrace]

I would love to know how many people use the cash method for inventory tracking. Tracking the cog for every item is insane to me.. especially if your profit is sometimes $10 Also would love to see a video on MY RESELLER GENIE!!

[@bigswole2907]

Thanks for all the effort you put into these videos.

[@katrinamurray1001]

So when you buy inventory how do you deduct for taxes?

[@1960bluebug]

Simply save receipts. That's your cost of goods. You also deduct state taxes paid as well.

[@dblanco4083]

Go daddy support is stating to me they’re not selling the “book keeping” services to new customers anymore. Have you heard of this?

[@Raikenprofit]

Really? Never heard of it

[@shawndakramer7352]

Steve do you pay yourself or transfer money out of your ebay account to a personal account?

[@tamarahine6328]

Great information! This is exactly what I've been needing to learn about for awhile now. Thank you Steve for all your time and effort to teach this old dog new tricks. Now maybe we can retire at 62 with a nice business and with great income. 😊

[@mihalyfreeman5928]

Wong! His advice is flawed in every way.

[@TheBlakebliss]

Wow man this video was so helpful

[@Weatherfactsnews]

It’s so hard to split accounts because I go low on cash so I use both accounts but I’m changing it today

[@kamanama3671]

do I need an EIN To only pay taxes on profit?

[@bcblues-x2l]

Great video! Very informative! Thank you.

[@Flȅȅbit]

Yeah didn't really explain much of the book keeping aspect it just says to keep your business separate from your private and get an accountant 🤷🏻‍♂️

[@Deee-yz9rj]

Thanks!

[@samyafawz3695]

thank you

[@michellemarie1929]

Go mom! Love that. Where I live there’s a ton of resellers yet oddly I can’t find a tax professional that understands what I do. I always wonder if stuff is being left on the table. Would this software help with that? I keep track of every expense but come tax time I’m told I can’t use a lot of it. Like I can’t use a portion of my cell phone bill, only internet.

[@marioreglin5995]

read the book Tax loopholes for ebay sellers

[@hondagame7069]

i just watched this and realized im pretty fucked. i used multiple credit cards and personal banks.

[@ct155]

Thank you for this video! Very helpful 👍🏼

[@MoonRide333]

thx!

[@slikazzip]

This is GOLD, THANK YOU!!

[@Raikenprofit]

Glad you enjoyed!!!

[@Xeyxey0]

I hated tax time before I ever started reselling, so....yeah, I'm sure I'll hate it even more now lol.

[@nathanaelearl2218]

Blah blah blah... Keep records and get a CPA. And don't forget to smash thelike button and subscribe.

[@Elenthachat]

Great video very informative thanks!

[@Raikenprofit]

Thank you for watching.

[@brandonestelle6318]

Very valuable info Steve!

[@brittneyyoung1882]

Thank you for this info!!

[@teresamomof52]

This seriously has helped

[@jasonp6880]

Thanks Steve!

[@Raikenprofit]

You're welcome!

[@AFLTDADDTS]

Awesome video!!!! Thank you!!

[@katrinamurray1001]

Great information well needed 🙂

[@ivethurbina4458]

Wooooouuuu Omg Thank you Thank you Thank you! for too much valuable information.

[@jlosworld4086]

Wow thank you !!!!!!!

[@cherylbranche1532]

For me, tax season is a nightmare

[@misseyespy6711]

Thank you soooo need assistance

[@barbarabooth9824]

Go daddy is going out of busness

[@kevinhawthorne5257]

Awesome video

[@ThriftyMcFlipster]

And then Godaddy ended their wonderful streamlined bookkeeping program and screwed us. Trying to get everything setup in Quickbooks is a disaster.

[@3rdcoastpicknflippn604]

Hey

[@3rdcoastpicknflippn604]

If i sign up for a individual Amazon sellers account to try it out, can i switch to a professional account later on?

[@Raikenprofit]

@@3rdcoastpicknflippn604 Yes you can!

[@PamelaS.H.]

I learned more from the people commenting.

[@garfield8900]

Go Daddy Bookkeeping isn't available anymore...

[@Egokii]

if this is a tutorial for eBay bookkeeping, then your target audience is small and new eBay sellers. Having said that, why are you pushing a $1K per month accounting software.... no common sense.

[@Raikenprofit]

I didn't even mention any affiliate links lol what are you talking about Luis? :)

[@Egokii]

@@Raikenprofit that it makes no sense to tell a starting/small business to invest in a $1k per month software.

[@tootsxoxo9427]

This is NOT FINANCIAL ADVICE!! 😉👍

[@btam13]

GoDaddy is shutting down!

[@nativetxntexas7341]

Just heard that. Now what??

[@sierrah.9922]

This is right on time ⏲

[@herilugo9059]

I have al mix with my personal account and I’m about to hit 20k on eBay, I’m stressed out 😰, so how do I fix my problem?

[@spacefren3826]

Did you hit 20k? What are you going to do? Also did you know the new tax law is $600 in sales in a year? No more 20k for us little guys. 😢

[@soozalongtheway]

Very helpful information! Thank you!