Many online sales platforms have sprouted up over the past five to ten years, making it easy for an artisan or producer of materials to set up a shop and sell their materials or finished goods. While setting up the shop is easy, handling the financial details of this type of a business could be a lot trickier. Find out how CPA firms in Las Vegas could help you to manage the income, expenses and taxes that you have as an Etsy seller.
Tracking Your Operating Expenses
CPAs could help you track your operating expenses as the owner of an Etsy shop. Some of the most common expenses for operating one of these shops include PayPal fees, credit card transaction fees, listing fees, postage, mailing supplies and raw materials. The accountants can also help you to determine if your business is operating at a loss or a profit based on the tally of your expenses.
Collecting and Submitting Sales Tax
Depending on where you are located, Etsy's transaction platform will automatically charge certain customers sales tax. If Etsy handles the payment of the sales tax to the states that require it, you might not have to do anything else. If the system does not properly make the submissions, it is your responsibility to do so. CPAs can help you with that.
Filing a Tax Return
The CPAs at an accounting firm can help you figure out if your Etsy store qualifies as a hobby or a business, based on your profit level. If it is determined to be a business, you will have to file a federal tax return and possibly a state tax return.