Wednesday, July 25, 2012

Business Taxes

So its the end of the second quarter and I need to submit our business taxes to the good old state of California.

The electronic forms were pretty easy to file, but because we didn't sell a large volume of items, some of the areas were I had to fill out took me a few minutes to figure out what they wanted in which line and where.

All in all, we submitted $27.00 to the state and paid $1 processing fee to pay with our company card because I couldn't figure out our US BANK ACH routing number at 7 something in the morning before I ran out and off to work for the day.

So far our little pen turning business hasn't been bad. We almost had a large custom order but while I was showcasing some of his work, we ended up selling another pen and letter opener so we only have a few of those to offload.

I decided we should keep one of each item he makes as a "sample" product so people know what he's capable of making should they be interested at a later date :) It looks like we might have some corkscrew bottle openers around Christmas time for a custom order from some of my co-workers.

So far we have sold and collected $384.32 this year from SCB's wood turning and have spent $840.21on anything and everything wood turning related that we can deduct for tax purposes (This includes some tools and "pet projects" that weren't actually for selling, but given as gifts to let people know that he makes things and to practice his turning before we went to the farmers market).

So, as of now we are $455.89 away from breaking even and the cool thing about that is we have enough inventory on hand that we could get break even if we get a chance to sell everything he's made/can make.

And that my friends is the ultimate goal for now... to just have his business pay for itself this year while we test out inventory and prices :)

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