Hi everyone! I did a search to see if anyone already posted this question - but none have been as detailed as I was thinking.

I recently filed my taxes for the first time and realized I need to keep better track of my inventory and supplies.  I already had an inventory list of all my finished pieces and their prices and details and I have since created another Excel spreadsheet to keep track of all the supplies I have in stock.  I just can't help but feel like I should have more information... so I have added a list below of what columns I already have on my spreadsheets and I would just like anyones opinion on what else I should add, or any other spreadsheets I should create.  If this stuff seems sufficient, please let me know too so I can relax a little, lol.

Inventory (Finished Pieces)

Column#1 Inventory Number

Column#2 Quantity in Stock (although this number is usually 1 as I make very unique pieces)

Column#3 Price Including Tax

Column#4 Length of Piece

Column#5 Description (ex."Dyed MOP Shell Pendant (Aqua), Hematite Cylinder, Black String, SP Barrel Clasp")

The categories are also seperated out by Necklaces, Bracelets, Anklets, Earrings... etc. I have this exact spreadsheet repeated for each of my different Jewelry Lines.  I was thinking I should add a costs column as well...??? 

Then I have my new Supplies Spreadsheet (beads & components)

Column#1 - Image of the Beads (for easy finding)

Column#2 Description including color, size, brand (and if bought online, that websites inventory number for the bead)

Column#3 How many Beads in Stock

Column#4 Price per Bead

Column#5 Notes (anything special about the bead or where it came from)

 I have also organized the list even more by seperating sections out (Ex. Clasps, Glass, Stones, Shells...etc.)

I mean, this all works for me, but I'm just wondering if there is an easier way that what I already have - I was looking into software but they're all so expensive (for me anyway), and they don't really seem to do much more than I'm already doing....  So does anyone have any comments or suggestions on anything else I should be tracking?  (BTW - I do track all my sales obviously, but I dont' need help with that)

Oh and one more thing - how does everyone track between years? Like I obviously have inventory left over from this year - so do I created a totally new spreadsheet for 2009 or just keep adding to the one I have?  And when you guys sell something, so you just delete it off your inventory since it's tracked in your sales record?  Right now I just put a strike through sold pieces. 

Sorry there are alot of questions in here.  But I figured here would be the best place to ask.  Hope to hear from someone soon.  Thanks for your time!!!!!!!!!!

I have three spreadsheets; one for tracking my expenses for tax purposes (classes, postage, meals, mileage, beads/components, tools etc.), one for tracking sales, and one for tracking beads and components (vendor, item #, description, cost, notes on if it's as described, too small etc.).

In my sales tracking spreadsheet I list the name of the piece, date sold, price for the piece, sales tax amount, cost of components, and my profit amount.  I also track items I give away for door prizes or donations.

My biggest issue is tracking current inventory--which I pretty much don't do.  I'm also interested in how you keep up with this task.  Is this something that must be reported in income tax? 

Alice   

Reporting may be different in different states - so I'm not sure for you. My mother in law does our taxes and at first she thought all we needed was my reciepts and my sales records.  Then she called me a few days later and said "Oh my gosh, I forgot to get this other info from you!!!" And she needed to know: the retail value of my finished pieces I still had in stock, the cost to make them & the value of all the supplies I had left over.  The Retail value of my finished pieces was easy because I had all that logged, but I wasn't exactly sure on what it cost me to make each piece because I hadn't logged all my supplies.  So that's why I started the Supplies spreadsheet - that way I can easily keep track of what materials I have and how much it really cost me to make a certain piece.

Keeping up on it is a task though.  Basically what I've been doing now, is everytime I buy something new, I take a picture of it, insert that into my spreadsheet with all the details I listed earlier.  And then when you make something, you have to go through and change the number you have left (say you originally had 32 6mm silver rounds in stock but you used 5 in a piece, you then have you update the silver rounds to 27 in stock).  Same with when I sell a piece - I have to update my inventory list.... it definently is a task, and I'm still trying to get used to it - Before I would just make something, and put a price I thought it was worth - now there's alot more involved... more business like, which in some cases stinks - but it really helps come tax time.

Keeping track of what materials you're using:  So far what I've been doing when I make a piece is write  down every single material I used and what that material cost (ex. 16 inches of string = $2.50, 5 silver 6mm rounds = $0.50 total $3.00)  I usually just write the materials down then check the prices later and save it all on a paper - then I stick the paper in the jewelry bag with the finished piece, until I'm really to update my Supplies list and my Inventory list... make sense?

It's forcing me to have specific steps when I make a piece.  It's hard right now because I'm not used to doing it, but I'm sure over the next couple months I'll get the hang of it.

Hope that helped Peachtree!

Anyone else have any comments about the way I do things?? Easier ways?? Or am I doing ok???