Looking for advice on how to proceed for small business taxes and bookkeeping

I've recently opened a small shopify shop and have been getting orders, yay!

I've been using Wave to record what I've spent and dropbox to keep a digital receipt and link to those transactions in Wave. Hopefully that should be enough come tax time. It's a sole proprietor business.

So what I'm now thinking about.. How to calculate how much to put away for taxes.

Example: I sell 50 of product A, 70 of product b, 30 of product c. I bought each product from the manufacturer for different PPU. How would I be calculating accurately to know how much I should be putting away for tax?

Something else to add to that. Say this month I bought product A for $5 PPU but next month I buy it for $4 PPU. Do I need to keep track of this and know for each sale, how much I payed for that item from the distributor or can I just use total numbers. Like if I spent total $1500 for a product in 2 orders and they were different prices for both orders.

Thanks for any input, first time having to think about how to do this properly so I don't get a surprise come tax time.

submitted by /u/a-char
[link] [comments]

Leave a Reply

Your email address will not be published. Required fields are marked *