Thank you for all this wonderful information!! It is such a big help to me in trying to start a craft fair jewelry business!

Hi Dan, I always recommend having a session with a certified accountant to get you on the right track with what info you need to record each year, and all tax deadlines throughout the year you need to comply with. That way you’re not wasting time on the wrong stuff, and you’ll be sure to be in compliance.

http://jewelrymakingjournal.com/the-kiss-theory/

There are several comments with the writing.

I also track some info on my credit card processing app on my iPad; however, there’s much room for what I found I needed to build my business, thus, I returned to this method.

The alternative was to purchase all the inventory tracking software and generate barcode stickers…when I researched this last year I decided I didn’t want to spend the $3K for all the stuff along with the hours of learning and getting the software started.

Oh yes, when I sell the item, I have the card with the selling description on it. I mark the date sold, and write down some brief info on the buyer, like “gift for”, woman 40-50 (give ranges), etc. I record any info about the buyer as possible, I tell them what I’m doing as well and ask them a few generic questions I know they don’t mind answering. This way I have the info for when I’m designing new pieces especially if they are hot sellers.

When the waiting buyers are fast and furious this can be cumbersome (which has happened to me lately), I now have a short (1/3 a page) form I ask them to complete and give them a small discount for doing so. 90% usually fill it out.

First, you need to keep track of what’s coming in. When I purchase supplies I separate tools and anything else from supplies that are placed into jewelry. Then in my drawers of supplies I store the pieces in their original bag if possible, if not I replace it with purchased small ziplock bags, along with some info (cut it off if it is small), such as vendor’s name, purchase date, and individual piece cost (which I calculate on the invoice and then transfer to the plastic). When I design something I write the pieces on an index card, afterwards I place it on my scanner and take a picture of it (reduce it if needed) and paste on the index card. I mark the cost, wholesale, and retail price.

If the piece is ready to for display at a show, I keep the card (which has a description of the piece) with the item, if possible. It’s harder with earrings, so I keep those separate.

Now for some items I have a general cost associated already calculated, such as for a necklace I know it takes a latch, some jump rings, I average those out and that’s what I add on the card. If copper I have a set price, brass, I have a set price, sterling a set price, etc. I keep an index card (large one) with all the what I have named “average cost card”. This works perfectly for an IRS auditor as well (hope that never happens). FYI, they know our chalenges, and it isn’t a “requirement” to use software (in IRS rules). The language reads to track to the best of our ability.

At the end of the year, I have the cards to refer back on for jewelry that didn’t sell (which is an important number / ending inventory). From this any accountant can calculate the beginning and ending inventory and COGS if needed.

Nallery, thanks for asking!

The best thing to do is to have a short session with a professional accountant who specializes in home businesses. Explain what you do, and ask the accountant to outline a simple system for tracking the things you need to track. That way you’re not wasting time tracking the wrong things, or coming up at the end of the year without the info you need. Depending on where you live and how much jewelry you sell, the whole accounting / record-keeping procedure may be surprisingly simple. Also where you live, there may be tax deadlines you need to know about. It’s worth it to get a professional account’s input, especially when you’re starting out.

You may also want to see this post here on JMJ, but the accountant’s advice trumps anything that you read here on JMJ:

The Business of Beads – Bookkeeping

I hope this helps! 🙂

I’m NOT a lawyer or an accountant, so please note that while I’ve researched this information carefully, none of the information in this JewelryMakingJournal.com website is intended to be legal or financial advice.
Please use your own good judgment in determining when the services of a lawyer, accountant, or other professional would be appropriate to your situation.

How would you keep track of inventory without using an inventory software? Would you happen to know any other suggestions for doing it without spending the money?

Thanks!