Sales Tracking and Profit Monitoring with Included Spreadsheet
Have you ever lost track of what you sold and for how much you sold it for looking back through the year? I know for a fact I have before, but I don't have that issue anymore. First off, you should never have this issue because it's important to keep track of your expenses, costs and profits for tax purposes. In the eyes of the IRS if you sell anything for a profit you're operating a business and can be taxed accordingly. This is why it's very important to know what you make, how you made it and when.
With PayPal, if you have over 200 transactions and over 20k in sales then you're getting a 1099 form in the mail (and online). This is a document that they send to the IRS and you. You can check for this in your PayPal account. Click Reports and then Tax Documents. It should show up there. Otherwise you can always call or email them and they will happily clarify where you stand with regards to a 1099.
So, now that you have a 1099 you may be wondering what to do. From here, it's actually not that bad if you have your expenses well tracked. You have to report the money on the 1099 in your tax return form. Almost all tax software allows you to include a 1099 fairly easily. When you do so, all the money from the 1099 looks like pure profit to the IRS. Obviously this is not the case and this is the part in which your tracking comes into play.
You've meticulously managed your inventory and sales for this very purpose. You have to tell the IRS in your return how much of that money was real cost to you and how much was profit. You also include a ton of other write-offs depending on your personal situation. This isn't an article on how to do your taxes, but it is one that you can look to when you want to figure how to track your sales for the year.
I'm introducing you to the sales tracker I have created. Click the link below!
You cannot edit the sheet directly from the link above. You must either save the sheet to your personal drive and then edit. Or, I recommend downloading in the OpenDocument Format (ODS) and then edit the file in excel. This will retain the graphs that track your progress on the last sheet.
In addition, the fees and shipping for the included formulas are editable on the last sheet for your convenience. This is if StockX decides they suddenly don't want to offer free shipping or a rate changes down the road!
Hopefully this sheet helps you out when you're tracking your expenses and profits this year, and don't forget to pay your taxes!
While I've got your attention, you may be interested in some of my other work! You can browse through the rest of my free content here. And then if you're looking for more you I highly recommend considering The Sneaker Bible as the most comprehensive guide to assist you along your journey as a reseller.