Crafting Your Finances: A QuickBooks Guide for Handmade Businesses

Crafting Your Finances: A QuickBooks Guide for Handmade Businesses

Now, I know what you're thinking. QuickBooks? Really? Isn't that for big corporations with fancy accountants and not for us 'creative types'? It's a sentiment I shared not too long ago, but let me tell you, I was wrong. As handmade business owners, we often find ourselves wearing many hats, one of which, undoubtedly, is the dreaded financial hat. Like it or not, keeping your finances in check is a crucial part of running a successful business. 

When I first started Ghost Poppy, I assumed that bookkeeping was as simple as tracking money that comes in and goes out. And for the first 3 year I only tracked that! As time went by and my business grew, I found myself lost in a labyrinth of numbers. 

Let the Automation do the Work

One of the first things that won me over with QuickBooks was the automation. Are you tired of manually entering every little receipt and tracking every sale? With QuickBooks, I found a simpler way. I was able to link my business bank account directly to QuickBooks, and voila, all transactions were automatically imported and categorized. 

Stay on Top of Your Cash Flow

QuickBooks provides a clear and up-to-date picture of where your money is coming from and where it's going. As creatives, it's easy for us to focus on making beautiful products and forget about managing our cash flow. I’ve been there! QuickBooks helped me keep my financial health in check and make informed business decisions.

Farewell, Tax Season Stress

Oh, tax season. The thought used to send chills down my spine. By keeping track of your income, expenses, and even mileage, QuickBooks can automatically calculate how much tax you owe. Come tax season, all you need to do is generate a tax summary report. It's that simple!

Have Your Business at Your Fingertips

As crafty folks, we aren't always behind our desks. We're out there, sourcing materials, attending craft fairs, or meeting potential collaborators. QuickBooks has a robust mobile app that lets you manage your finances on the go. I personally love being able to snap and save receipts with my phone. Paper clutter, be gone!

I won’t lie, there was a learning curve involved. QuickBooks is a powerful tool with a multitude of features. But I can assure you, investing the time to learn is worth it. Remember, just because we're creative entrepreneurs doesn't mean we can't master the numbers. QuickBooks is a tool that, when used effectively, can turn the daunting world of finance into an understandable part of running a handmade business.

Hiring a Bookkeeper

Everyone that runs a micro business has that one job that they say "when I get enough money I'm hiring someone to do this" for me, that was a bookkeeper.  I started off juggling my finances alongside crafting, shipping, customer service, and every other aspect of my business. It was doable at first, but as my business grew, so did the financial complexities. Keeping up with receipts, expenses, invoices, and taxes became overwhelming. Plus, I found myself spending more time crunching numbers and less time creating - which is what I loved doing the most.

Bringing a bookkeeper on board can bring numerous benefits to your business. Firstly, and most importantly for many of us, it frees up your time. Time that can be better spent designing, crafting, and selling your handmade products. Or, time to strategize your business, reach out to new markets, and build relationships with your customers. As they say, time is money!

Secondly, a bookkeeper can bring a level of expertise that you may not possess. They understand the ins and outs of financial management, and can handle complex issues like tax regulations, cash flow management, and financial reports. With their expert eyes, they can also spot financial red flags early, before they turn into costly problems. When Ghost Poppy changed from a Sole Prop to an LLC, things got complicated tax wise. There were different tax rules for and LLC and it got overwhelming. Our Bookkeeper was so knowledgeable about tax rules for an LLC and they even file our sales tax returns for us!

A good bookkeeper can provide valuable financial insights about your business. They can help you understand where your money is coming from, where it’s going, and how you can increase profitability. They can even help with budgeting and forecasting, helping you plan for future growth.

But hiring a bookkeeper is not a decision to be made lightly. It's important to find someone who understands your business and its unique needs. Look for a bookkeeper who has experience with handmade businesses or micro businesses. Ask them about their processes, how they communicate, and what software they use. Make sure they're someone you feel comfortable with, as they'll be dealing with your financial details.

In my case, hiring a bookkeeper was one of the best business decisions I've made. Not only did it reduce my stress levels, but it also helped improve my business’s financial health. Plus, it gave me more time to spend on my craft, which brought the joy back into my business. And after all, isn't that why we started these businesses in the first place?

If you're finding yourself buried under receipts, or feeling overwhelmed by the financial side of your business, consider hiring a bookkeeper. Remember, it’s not an expense, but rather an investment in the growth and longevity of your business.


Please note that the information contained within this blog is intended for general informational purposes only. It does not constitute legal advice, nor is it intended to replace professional counsel. We encourage readers to consult with a qualified professional or legal advisor for specific advice tailored to their unique circumstances. Ghost Poppy assumes no responsibility for any actions taken based on the content of this blog.

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