heyhe Bay sellers its Suzanne a well
thanks for coming back for another video and today is kind of a boring topic but
this is one that is asked a lot and it’s about what do I need from my eBay sales
PayPal records for my taxes now this is going to depend a lot on how you are set
up as a business and let me do a disclaimer that I am NOT a tax
professional this is not tax advice I’m just helping you get organized so that
when you go to a tax professional or do your taxes yourself you’ll have the
right information and when I started on eBay back in 2003 I did my taxes myself
as a sole proprietor under my own social security number and then as my business
grew eventually I became an S Corp which gives you more tax benefits again I am
NOT a tax professional so I’m not going to elaborate on that but I did go see a
CPA who advised me that I should become a an S Corp because I had multiple
income streams I was doing consulting selling information products as well as
selling on eBay and I was getting to the point where it would benefit me more
financially to become an S corp so that being said they do my taxes every month
I pay monthly taxes both federal and state and I chose that because I don’t
want a huge tax bill at the end of the year that is just too scary for me and I
would rather pay every month and keep on top of it than to have this big tax bill
even if in the quarter I just I don’t like that it makes me too nervous so now
one thing that people ask is you know what should i do should I be printing
out all my eBay sales I print out all of my PayPal transactions no you don’t need
to do any of that what I do every month is I pull my banks
maintenance my business bank statements save it as PDF and then I put it in a
Dropbox folder that is designated for my CPA I do the same with my business
credit card my PayPal transactions you can pull all of those and put it into an
excel sheet and then you can sort them by type you know whatever however you
want to sort them but what I do is go through and tell her okay this was
consulting this was an eBay sale sale that’s with eBay shipping you know on
and on and then she categorizes it correctly so all that in a PDF I also
pull the PayPal monthly financial statement so that she can see what’s
going in and out I don’t do anything from eBay because
eBay does not provide any financial records
some people use the bookkeeping that eBay provides I can’t think of the name
of it but I’ve always done it this way and this just works for me so that you
know that I’m just sharing what works for me so I get this nice report every
quarter that shows me cost of goods sold profit loss my payroll I have people on
payroll stuff like that that I don’t want to do
I am not good at that oh it’s godaddy bookkeeping sorry I just consider the
name that’s the one through eBay I don’t want to do all this stuff I’m not good
at it I have no calling to deal with tax stuff it’s boring I like it I don’t want
to spend my time doing that is not a gift I hate it so I’m just like you I do
not like dealing with the tax stuff but you have to do it so back to the eBay
you don’t need to print out all this stuff and keep all these records of
every single transaction and have all this paperwork everything can be done
seamlessly with no paperwork electronically put it all in Dropbox
folder share it with your accountant they want to print something they can
print it on there and the only paper work I keep are
receipts from your stores or ever I’m buying inventories and then I do keep a
mileage tracker that’s on my phone so that I can tell her the miles driven
each month for the business but but you really don’t need to be printing out all
this stuff it’s a waste of ink it’s a waste of paper it’s a waste of your time
it clutters up your office the more clutter you have the more overwhelmed
you feel so you can just pull your statements save them in a Dropbox folder
and then share that with whoever’s doing your taxes I just want to share that tip
you know this is all I get this is all I have for my taxes I don’t have I get
this once a quarter and I’ve been doing this since 2009 I started with a CPA so
it’s been eight years so I have a cub with all these in it but just a little
folder every quarter with my information in case I get audited that is another
reason that you want a CPA is if you get audited guess what that’s their job to
figure it out you don’t have to do it what do I pay my CPA a month I pay her
about $200 a month and that includes doing my monthly and quarterly returns
payroll and my annual return which when you’re an escort it’s huge it’s a huge
bill so I have that divided out over 12 months I just pay them every month
electronically and they take care of anything for me that I need that’s tax
related so that also takes the worry of being audited off of me and puts it on
them because that’s what I’m paying them for so that’s all I can really tell you
about taxes it is something we have to deal with in this business you will get
a 1099 K from PayPal if you have to $20,000 and 200 transactions through
your PayPal but you should be reporting your earnings anyway and you can
do that by going on your PayPal account and pulling your tax reports and your
year-end or year-to-date summary to show you how much has gone through there you
can you still have that information so I know this is a boring topic but refer to
this video in the future when people say what do I need for taxes that’s what you
need and what the main thing you really need is a CPA or financial professional
to handle it for you because if you are not knowledgeable tax code changes all
the time think about how much ebay changes and how hard it is to keep up
with that and we know eBay tax code changes all the time and you can be
missing deductions that could save you money so you really it is worth paying
for that I will say I’m not a fan of the third-party services and all the
photography stuff you can buy for your business and all these extras it is
worth paying a CPA to handle the money side of it so thanks for watching and
the next video will be more exciting than this have a great day on eBay bye