I've been making beaded jewelry for some time for myself and friends and family but would like to turn it into a business. How do I go about placing a value on the beads, findings, etc. that I already have from an accounting/tax standpoint? I no longer have receipts for these items since I wasn't selling them.
A good accountant can provide invaluable help to jewelry sellers for issues just like this one. They can help you determine how (and if) you can account for items you bought in one year but use in another. Other issues that often come up for jewelry sellers are accounting for things that are bought in quantity (like small beads) but used sparingly in pieces, making sure you expense everything you're entitled to (like travel to and from a show) and making sure you're charging for and paying all applicable sales taxes.
- Dr. David Weiman
Dr. David Weiman is a respected expert in the field of marketing and selling handcrafted jewelry and a well-read contributor to Fire Mountain Gems and Beads "Ask the Experts". He is the author of Introduction to Marketing and Selling Jewelry, The Jewelry Selling Answer Book and The 5 Keys to Selling Handcrafted Jewelry. A free newsletter on selling handmade jewelry is available at his website: www.marketingjewelry.com.