My Reseller Genie is specifically designed for resellers and has features like inventory tracking and sales reporting that make it ideal for bookkeeping purposes. Not only can you print off a profit and loss statement at the end of the year for your accountant, but you can easily track business trends. You’ll also be able to see areas where you may be losing money. One common mistake among resellers is mixing personal and business finances. To avoid confusion and ensure accurate bookkeeping, it’s crucial to keep these two separate.
How to Start a Reselling Business: The Ultimate Guide
By flipping items from garage sales and auctions, she has paid off debt, paid for private school tuition, and much more. Her current mission is to retire her husband from his full-time job. My favorite way is to watch or listen to YouTube resellers and study sold listings on whichever platform you are selling on. Keep in mind that raising your average sales price does not always mean that you are increasing your profit margin. You won’t know if you are reaching your ultimate goals unless you have a system to track sales across all selling platforms. With the analytics in My Reseller Genie, you can make decisions based on actual sales, profit and expenses.
Best eBay accounting software runner-ups
- Yes, tracking eBay inventory is a crucial aspect of owning a reselling business.
- Star ratings are reviewed frequently and subject to change.
- This is general information, but no blog or social media post should be substituted for professional tax advice.
- To avoid confusion and ensure accurate bookkeeping, it’s crucial to keep these two separate.
Ideally, the best accounting software for your eBay store will perfectly balance the following benefits. If you sell more than 50 products a month, you need Zoho Inventory’s Standard plan, which costs $59 a month if you pay annually. Connect directly to your Shopify store and let Seller Ledger automate your bookkeeping. These valuable analytics can help you establish goals and concentrate your time on the platforms and items that yield the most profit. Also, you will want to consider what you need to know for practical purposes. I love Airtable for tracking my inventory simply because it’s so much more robust than Google Sheets.
Reseller Tax Academy
Consider opening a dedicated bank account and using a separate debit or credit card for business expenses. Organizing sales records as an eBay reseller is no easy feat. With hundreds, if not thousands, of transactions happening each month, keeping track of them all can be a daunting task.
In the past, GoDaddy Bookkeeping was one of the most popular tools among eBay resellers, but it has been discontinued. Today, most eBay sellers rely on traditional spreadsheets, QuickBooks, or Xero. He owns Not Your Dad’s CPA and specializes in helping resellers with all things accounting and taxes.
ConnectBooks can automatically sync data from eBay and other channels, keep track of inventory, and generate useful reports, including P&L reports and cash flow statements. Remember to take advantage of deductions and credits available to eBay resellers. Did you know you may be able to deduct the cost of selling fees, shipping supplies, and even the use of your home as a workspace? Keep detailed records of these expenses to maximize your deductions and lower your taxable income.
The five picks we already reviewed aren’t the only options out there. Check out three more of our favorite accounting software options for eBay sellers like you. Whether you’re getting accounting software for the first time or your old software no longer meets your needs, we can help. Enter some basic business information below to get a free, personalized recommendation for the right software. If you’re searching for accounting software that’s user-friendly, full of smart features, and scales with your business, Quickbooks is a great option.
There are a lot of banks out there that offer free checking, even for business checking accounts. You can then have your sales income deposited in this account and use this debit card, or get a designated credit card, for your reselling expenses. You will then know with confidence that everything going in and out of that account is strictly business.
Import your transaction history and let Seller Ledger break down your seller proceeds into order sales and fees. For bookkeeping and profit and revenue calculation, I use Vendoo. Aside from the information you need for tax purposes, what do you want to know? You likely want to have an idea of how much money you have expended on unsold inventory, or your monthly operating expenses. This is the part of a reselling business that most people hate. That was especially the case in the beginning when I really didn’t know what the heck I was supposed to be reporting or how.
However, Xero also limits you to 20 invoices a month, so it isn’t the best choice for sellers with more invoices. And QuickBooks Online is pricey, but its mobile app simplifies on-the-go accounting. We organize your sales data and selling fees into the proper categories, and make it simple for you to categorize the rest.
Additionally, each platform may have its own fee structure and requirements, so be sure to factor that in as well. There are multiple methods to do this, but the best one, in my opinion, is to educate yourself on items that sell for more than your current average sale price. Reconciliation involves comparing your records with your bank statement to ensure all transactions are accurately recorded. It’s essential to do this regularly to catch any discrepancies and maintain the accuracy of your records. Seller Ledger tracks all of your order details, including shipping collected and labels purchased, plus marketplace fees. Add the cost of your inventory and let us show you the profit of each and every order.
