Comments on: The Kiss Theory

By: Rena Klingenberg

Rena Klingenberg — Fri, 05 Apr 2019 17:25:49 +0000

In reply to Andrea.

Hi Andrea! 🙂 The easiest route is to go to a certified tax account who understands home business. This type of person can get you squared away with all the things you’re stuck on – and can also set up any quarterly sales tax dates for the rest of this year. You will feel SO MUCH better once you put this problem into someone’s knowledgeable, certified hands – so you can go back to what you’re good at – creating beautiful things! 🙂

By: Andrea

Andrea — Fri, 05 Apr 2019 02:53:19 +0000

Literally sick.
I dont know guys, I’m reading everything you are saying, and I have been losing sleep sick to my stomach and having panic attacks over how to invintory my jewelry supplies, so I’m really reading them… but I still am not getting it even with Kiss.

I think I have been following MEBAS (make everything big and scary. 🙂 I also have trouble with spreadsheets… (they live under my bed…
eek!)

Im not worried about taxes as I am trying to account for them and see if I’m making or losing money. I dont know if that matters. So we have decided that I dont have to count all my beads, (Thank Goodness.) But how do we deal with pricing our jewelry?

Or are you saying we should just think ok I spent 350.00 on beads, I made 236 at this show, and so on.

I’m sorry this is a cluster for me… please feel free to contact me directly. I am so lost.

Thanks friends!

By: Angie

Angie — Wed, 20 Feb 2019 02:17:54 +0000

In reply to LaSaundra. Same here! I count every bead and record everything!

By: LaSaundra

LaSaundra — Mon, 07 Nov 2016 22:09:43 +0000

I Love the KISS (Keep It Simple Stupid) Theory of MIMO (Money In Money Out).
Quick question: Since I’ll be tallying up all my expenses and subtracting it from my revenue to arrive at net income… I still have a hang-over a little woozy on:

1. How do I account for beginning inventory with left over raw materials that has already been subtracted under expenses? Some raw materials taxes were paid and some not…at wholesale. (Don’t know if this matters or not). Also, received a ton of beads free.

2. How do I separate what is paid to the local sales tax office using the KISS Theory? Again…some raw materials taxes were paid and some not… at wholesale. (Don’t know if this matters or not). Just don’t want to pay double in local taxes.

I’m so right now in the middle of completing my own excel data base for accounting for each and every bead, finding and supplies that it’s driving me crazy going back to each and every excel receipt and photo of sold merchandise and counting the beads, & etc. in the photo to account for it. Arrrrgh!! Not fun at all!!!

Please help…Thank you!!

P.S. I may need to drink me some coffee! I believe it’s the antidote for hang-overs. LOL

By: Judy

Judy — Sun, 07 Feb 2016 13:18:54 +0000

Does this mean if you have less than 1,000,000$ income, you may choose either the cash or accrual and what is the difference?

By: Rena Klingenberg

Rena Klingenberg — Thu, 12 Feb 2015 14:13:26 +0000

In reply to Donna Dennis. Thank you for researching and sharing that info, Donna!

By: Donna Dennis

Donna Dennis — Wed, 11 Feb 2015 18:24:02 +0000

I have been doing tax liability research and keeping of inventories and accrual methods depend on the size of your business, here’s from the IRS site:
Rev. Proc. 2001–10, page 272.
Methods of accounting; inventories; small taxpayers.
This procedure provides that the Commissioner will exercise
his discretion to except a qualifying taxpayer with average
annual gross receipts of $1,000,000 or less from the
requirements to use an accrual method of accounting and to
account for inventories. Rev. Proc. 2000–22 modified and
superseded. Rev. Proc. 99–49 modified and amplified.

By: Annie Hubbard

Annie Hubbard — Fri, 26 Sep 2014 21:11:14 +0000

Hi Leni,

Thanks. I will check with ours again when I go in to get the dba.

Thanks again! You’ve been a big help.

Annie

By: Leni

Leni — Fri, 26 Sep 2014 16:21:29 +0000

Hi Annie, I believe it was the county clerk on Center St.

By: Annie Hubbard

Annie Hubbard — Fri, 26 Sep 2014 13:39:58 +0000

Do you remember where you had to get it (county clerk’s versus through the state)? I will probably ask again when I go in to register the business name, but she seemed to know what she was talking about. Maybe she thought I meant the tax ID?

Thanks so much for all your help, Leni. I appreciate it.

By: Leni

Leni — Fri, 26 Sep 2014 12:02:08 +0000

Hi Annie, I got a business certificate when I registered the business; not even sure if that’s the same as a license…

By: Annie Hubbard

Annie Hubbard — Fri, 26 Sep 2014 11:45:30 +0000

Thanks. I have an appt. set up with an accountant to talk with him. I seem to be getting the run around regarding a business license (I’d planned on getting a dba so I wouldn’t be running it in my name). I called the county clerk’s office and they told me they don’t do those there and she didn’t know anything about it (I can file the dba there but she knew nothing about a business license). She said she thought that was probably a state thing. So I emailed the state office/dept. of licensure and he told me they don’t do it at the state level, that I should check with the county clerk’s office, LOL.

I’ll ask the accountant.

Thanks again, Leni.

By: Leni

Leni — Fri, 26 Sep 2014 11:32:41 +0000

I think if you’re doing business in your own name you probably don’t need a license, but I would check with your accountant to be sure. You can get an EIN number for free from the IRS and later use that same number for tax exempt purchases.

By: Annie Hubbard

Annie Hubbard — Thu, 25 Sep 2014 13:24:45 +0000

Thanks, Leni ~ That helps!

As far as the business license is concerned, is that only necessary if I’m selling at a craft fair or would I need one to sell online as well (as on Etsy)?

By: Leni

Leni — Thu, 25 Sep 2014 12:16:46 +0000

I’m in NY too, Annie. You don’t have to pay the IRS estimated tax unless you’re making a lot of money – just pay at the end of the year on a schedule C.
As far as sales tax goes, the first year you will have to file quarterly on sales you have already made. After that, again if you’re not making a lot, you just file yearly (it’s an easy online form you can do yourself). You only pay once for the business license, but you not even need it.

By: Annie Hubbard

Annie Hubbard — Thu, 25 Sep 2014 01:24:30 +0000

This is exactly what I’ve been struggling with for the past year and why I haven’t done anything yet to start a business. I was all gung-ho to start a couple of years ago but then my husband put the fear of god in me about making sure I submit my quarterly tax estimations, etc. (his family owned a produce store). I’m in NY also so I’m wondering if things are more complicated because of that. I’ve been trying to research it on the IRS website but don’t seem to be able to get a straight answer regarding submitting quarterly estimations (how do you estimate if you haven’t sold anything before and you don’t know if you will sell anything?) I even went to a workshop put on by accountants and still feel like I don’t know exactly what I’m responsible for. I’m glad Rita mentioned the Business License and Tax ID. I thought they were the same and were necessary not only for obtaining discounts but for reporting taxes. I appreciate the info on determining whether the cost of the license is even worth it if your discounts over the year don’t surpass it (this never even occurred to me).

By: Rose Barden

Rose Barden — Fri, 30 Aug 2013 20:30:51 +0000

Whew! I am with Leni, I have a business account at my bank and and like Rita says MIMO = Money In and Money Out.

By: Linda

Linda — Wed, 16 Jan 2013 02:35:07 +0000

I am feeling a bit overwhelmed. I am planning on taking my hobby to next level. Can I get an example somewhere of these great spreadsheets?

By: Leni

Leni — Tue, 15 Jan 2013 12:45:02 +0000

If you set up a separate bank account for your business and run absolutely everything through it (all purchases, sales etc.) then you will automatically have a record of all transactions and won’t have to bother with cash receipts etc. You can code the type of expense in the check register so at the end of the year it will be relatively easy to list them for taxes.