| Here are a few tips on doing your taxes and | | | | observe. You need to pay an estimated tax on a |
| accounting as an eBay seller: | | | | quarterly basis when you are in business for yourself, |
| 1. Do not forget, you need to collect sales tax from | | | | and report business profits or losses. |
| buyers who live in the same state where you reside | | | | 4. Keep detailed books of your sales data. Do not |
| (unless you live in one of the handful of states that | | | | depend on eBay to be your only source or records. |
| does not collect sales tax at all, of course). When tax | | | | Create a database or a table in a word processing |
| time comes, you need to report to your state's | | | | document in which you record sale prices, purchase |
| department of revenue, too. If you collect payments | | | | prices, and other expenses. Make sure you record |
| through My eBay and PayPal, sales tax is calculated | | | | sales tax, any payroll expenses, your gross profit |
| automatically for you and added to the invoices that | | | | margin, and descriptions of the items you sell. |
| are sent to your customers. | | | | 5. One of the best kinds of financial records you can |
| 2. When you set up a business for yourself, whether it | | | | keep is a balance sheet. This tracks your assets and |
| is a sole proprietorship or a corporation, you need | | | | your liabilities, and your income and expenses. On one |
| professional help. A qualified tax accountant can help | | | | side, you have your equipment and inventory, your |
| you set up deductions, depreciate equipment, and | | | | cash on hand, and your other assets. On the other |
| create a schedule by which you need to pay your | | | | side, you record expenses, bills to pay, sales tax, |
| taxes. The hundred or two hundred dollars you might | | | | payroll and other liabilities. |
| pay for an accountant are more than made up by | | | | Learning how to manage your taxes and accounting |
| your savings in taxes and penalties. | | | | will help you become an effective and efficient seller |
| 3. Be aware of when you need to pay your taxes. | | | | on eBay! |
| April 15 may not be the only tax dateline you need to | | | | |