We cover bookkeeping, tax and accounting issues for makers.
bookkeeping tax
Schedule C for small business owners — complete 2025 tax year guide covering income, COGS, every deductible expense, and the common mistakes that cost makers money.
We compare periodic and perpetual inventory systems side by side — how each works, the key formulas, pros and cons, and which is right for small makers and handmade businesses.
Cash basis accounting sounds simpler, but if you hold materials or finished goods, it quietly breaks your inventory tracking. Here's why accrual is the right choice for handmade sellers.
Most bookkeeping tools are built for service businesses. Here's how to find one that actually works when you're making and selling physical products.
Worried about sales tax on handmade items? If you sell on Etsy, good news: Etsy handles it for you. Here's what you still need to know.
LLC or sole prop? Here's the quick decision guide for handmade sellers — with a comparison table, tax breakdown, and a clear framework for when it's worth forming an LLC.
Wondering if your handmade business is considered a hobby or a business? This article will explain the IRS 9-factor test, the tax implications for each classification, and what it means for makers who are just starting out.
Etsy shipping label costs go in Part V (Line 27a), not COGS. Shipping supplies go on Line 22. Here's how to find your totals and fill out Schedule C correctly for 2025.
If you are just starting your craft business and need some advice, or need some guidance on what to do next in order to grow your handmade business further then definitely consider arranging a mentor meeting with SCORE.
If you store your inventory and product samples at home in a dedicated location, you should be eligible to claim for business use of this space without needing to meet the usual exclusive use test.
We explain what Etsy sellers need to know about the 1099K form, what you'll need to do with this form and what to do if you don't receive one.
Etsy scatters your financial data across several reports. Here's exactly where to find your monthly statements, payment history, and order data in the current Etsy UI.
Are materials a business expense? Technically yes, but claiming them directly as expenses instead of COGS could cost you hundreds in missed deductions. Here's what makers need to know.
Supplies and materials are taxed differently on Schedule C — mix them up and you'll deduct wrong. Plain-English guide with examples for handmade sellers.
Not sure whether to use FIFO, LIFO, or weighted average cost for your handmade business? Here's what each method means in practice — with real maker examples — and which one Craftybase uses automatically.
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Because they don't know what their products actually cost to make.
Every week, one practical tip on pricing, materials, and COGS — the numbers that turn a busy craft business into a profitable one.
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