Newsletter - January 28, 2009

The Jewelry Crafter

A newsletter for the home jeweler

This newsletter will be published every 2 weeks, and will include hints and tips for your jewelry business. Any feedback or comments about the topics presented here are always appreciated. Click here to e-mail us.

If you have an idea for an upcoming article, or would like to submit an article for the newsletter, please contact us. Anyone who submits an article will receive a permanent link to their website in a special section of our link pages.

This Weeks Sponsor:

When do you need an Accountant?

by

Mary Harvey

Almost everyone who begins a new craft does so with the intention of selling it. Whether you display your creations at shows, or sell on the web, the goal is to make a profit, right? If you’re selling your crafts as a hobby, you can probably take care of your taxes and bookwork yourself. But if your business really starts to grow, things can get complicated and confusing really fast. What can I deduct, how do I keep an inventory, do I have to pay estimated taxes, how often should I pay sales tax, etc. If you are good with numbers, or have an accounting background, you may be able to do everything yourself. If not, it may be time to consult a professional.

Ideally, you should consult an accountant or tax professional before you start your business. They can help you choose the correct legal form for your business (sole proprietor, LLC, etc.). They can make sure that you have all the correct permits and tax numbers for your area of the country, as well as helping you to set up how you are going to do your record keeping and inventory. They can also advise you on common pitfalls and hazards of a startup business. And if you are ever audited, they will be there to help you.

How do you go about finding a good accountant or financial professional? Start by asking around. Talk to other small businesses and see who they use. Talk to your Chamber of Commerce or your financial institution. When you get some leads, call and ask questions. Ask if they have experience with small, home-based businesses. Have them give you some references and check them. Ask about fees, and what is included in those fees. Do you feel comfortable talking to them?  This is the person who is going to help you grow your business, so choose someone who will be easy to work with.

If you are serious about making your hobby a full-fledged business, then you should consult a professional. Tax laws are changing constantly, and an accountant will keep up with it and take a load off your shoulders. Having someone there who can answer your questions and help you reach your goals is well worth the cost.