How I Tracked My Business Income and Expenses in May: A Detailed Diary
Introduction
Bookkeeping is essential for any business, big or small. It helps you keep track of your finances, ensures you are prepared for tax season, and gives you insights into your business's financial health. This month, I meticulously tracked my business income and expenses using a spreadsheet template, and I want to share my experience to demonstrate how easy and beneficial it can be.
Setting Up the Spreadsheet Template
I started by setting up my spreadsheet template, which you can find here. This template is designed to make bookkeeping straightforward and efficient.
Introduction to the Template
The template I use is specifically tailored for small businesses. It includes sections for income, expenses, and net income, all of which are crucial for comprehensive financial tracking.
Benefits of Using a Spreadsheet
Using a spreadsheet template has numerous benefits:
- Organization: Keeps all financial information in one place.
- Accuracy: Reduces errors that manual bookkeeping might introduce.
- Efficiency: Saves time with pre-formulated sections for various types of income and expenses.
Income Tracking for May
Etsy Income Breakdown
In May, my total Etsy income was $4,830.10. This figure includes all sales made through my Etsy shop, minus any refunds and fees.
- Etsy Sales: $4,847.10
- Refunds: -$17.00
The selling fees on Etsy, which include processing, transaction, and listing fees, amounted to $724.61. After deducting these fees, my net Etsy income stood at $596.90.
Other Income Sources
Aside from Etsy, I also earned income from other sources:
- Shopify Store: $5,831.00
- Consulting: $362.36
- AI Speech Services: $50.00
This brought my total other income for May to $6,243.36.
Expense Tracking for May
Etsy Expenses Breakdown
The expenses for running my Etsy shop included marketing fees and other miscellaneous costs. For May, these were:
- Marketing Fees: $2,905.66
- Taxes Paid: $602.93
Other Expenses
Outside of Etsy, my business incurred the following expenses:
- Shopify Apps: $166.34
- Marketing: $3,527.80
- Payment Processing Fees: $475.56
- Other Miscellaneous Expenses: $113.00
- AI Speech Services: $72.44
The total for these other expenses came to $4,404.52.
Net Income Calculation
Etsy Net Income
To calculate the net income from Etsy, I subtracted all relevant expenses from my total Etsy income. This left me with a net Etsy income of $596.90 for May.
Overall Net Income
Combining my Etsy and other income sources, my total income for May was $11,073.46. After subtracting all expenses ($4,404.52), my business's net income for May was $2,435.74.
Detailed Analysis
Monthly Comparisons
Comparing May to previous months shows a decline in both income and expenses, with net income fluctuating as follows:
- January: $6,128.15
- February: $4,147.21
- March: $3,437.25
- April: $1,618.79
- May: $2,435.74
This analysis reveals trends and helps in making informed business decisions.
Insights and Trends
May saw a lower income due to fewer sales on Etsy, but other income sources helped stabilize the overall earnings. Marketing expenses remained high, emphasizing the need for effective marketing strategies.
Benefits of Using the Template
Ease of Use
The template simplifies bookkeeping, making it accessible even for those with minimal accounting knowledge.
Accuracy and Efficiency
Automated calculations and organized sections ensure accurate and quick bookkeeping, allowing more time to focus on growing the business.
Conclusion
In conclusion, regular and accurate bookkeeping is crucial for any business. Using a spreadsheet template can simplify this process, providing clarity and saving time. I highly encourage you to consider using the bookkeeping template I used to streamline your financial tracking.
FAQs
What is a bookkeeping spreadsheet template?
A bookkeeping spreadsheet template is a pre-designed document that helps you track your business's income and expenses efficiently.
How can this template help my business?
It organizes your financial data, automates calculations, and reduces errors, making bookkeeping quick and accurate.
Is the template suitable for all business sizes?
Yes, the template can be customized to fit the needs of both small and large businesses.
How do I get started with the template?
Simply purchase the template, download it, and start entering your financial data. The template includes instructions to guide you through the process.
