#158 Quickfire Accounting Tips with Accounting for Jewelers
Our most popular episodes are usually about accounting, tax, insurance, and legal requirements.
Why?
Because most jewelry designers have no clue where to start when it comes to setting up their accounting, inventory, and corporate structure.
I don’t blame you.
But when people like Mariel Diaz are here to break it down in a simple, totally not scary way it makes it a lot more fun!
Mariel has been in the jewelry industry her whole life! She started her business, Accounting for Jewelers, after realizing she was a much better accountant than jeweler. She saw the potential to help out people in an industry she’s super passionate about!
On this episode, she’s sharing so many resources and tips for getting your numbers in line!
Let’s get started!
Click here to download the show notes
Add Up All Expenses
There are lots of legitimate business expenses people leave on the table. It’s good to claim every single expense you have in your biz because you pay taxes on your profit, not just sales.
So take a look at the different categories and meet with an accountant to understand what you can and cannot “write off” for tax purposes. You might be surprised what your expenses actually are, then you
Cost of Goods Sold v. Inventory
This one is big! So often jewelry designers count their inventory as COGS when it’s still in your studio. Mariel suggests looking at it this way, material in your studio is essentially cash in the bank.
Only when the piece sells is when it transforms into cost of goods sold. So only when something sells is what you’re including in your business costs. Got it?
Spreadsheets or Software?
If you love spreadsheets and your mind works that way, keep using it! But not all jewelry designers and makers are super into keeping “tabs” on their business, can you relate?
So there are tons of new accounting and inventory programs available to you for a very reasonable investment. Mariel loves Xero for accounting and BenchWorks for inventory! They’re not the same thing, so you have to keep track of both.
xo, Tracy
P.S.
Mariel with Accounting for Jewelers is the sponsor for this episode and we love them! They’re bringing so many valuable resources to you for those things that bog down your productivity.
Check them out and take a course or two! If you do, make sure to get a $100 discount on all courses using the code: THRIVEBYDESIGN
Links:
Strategic Online Success (SOS) Accelerator
Accounting Made Easy – course for jewelers
Benchworks – Inventory for jewelers
Jewelry Design Manager – Inventory for jewelers
Unleashed – Inventory for jewelers
S Corp or LLC? Find out! myllc.com/corporation-calculator.aspx
Shopify POS Inventory Tracking
