Selling Your Craft
Craft Business Basics

Starting a Craft Business

Craft a Small Business That Works For You

Pricing Handcrafted Work

Promote Your Handmade Craft

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A Record Keeping System for Your Craft Business

The Basic Guide to Pricing Your Craftwork by James Dillehay

Learn how to Price Your Craftwork with this easy-to-follow manual for pricing crafts and other handmade items. Become more profitable right now! Get step-by-step examples of how to keep records so you know how much you are spending to make each item.

If you have been asking yourself,"How do I price my crafts?" this is a great guide for pricing crafts to start earning maximum profits. Get this book today!


Using A Record Keeping System for Your Craft Business

by James Dillehay, author of seven books, is a nationally recognized expert on how to sell crafts. Courtesy of

There is one aspect of being self-employed which seems to be universally dreaded, recordkeeping. But it's important because keeping good records shows you how to make a profit selling homemade crafts.

Keeping up with your business records is like homework. Only the grade may be more important now than it was then. The grade is whether you have enough money to pay your bills and feed your family. The key activity is to record and analyze your expenses and sales on a regular basis.

You should start keeping records from the day you start planning your crafts business. Begin by gathering all business related receipts and entering them into a software program like QuickBooks or Quicken Home & Business

The important point is to have a system you can follow up with regular entries. You can then extract meaningful reports from the information. Since Uncle Sam requires accurate records, you are legally responsible to do so anyway. And when it comes time to file your forms, QuickBooks or Quicken will give you simple tax ready reports that make it all worth while.

Should you hire an accountant or C.P.A.?

For most self-employed, the expense of hiring an in-house bookkeeper or accountant can only be justified when the business becomes so large that the owner can’t handle it alone anymore.

Whether you hire an accountant or not, you should know basic bookkeeping skills. You don’t have to have a degree or even formal training to learn accounting. Programs like Cashkeeper Works are simple and designed for small businesses.

When tax time comes, There are programs that offer Multiple States, Free E-file for Federal and State, Secured, Easy, and Reliable. You can also take a basic accounting class from your local community college or continuing education program. Small Business Development Centers or SBDC’s sometimes offer courses and many provide free counseling.

There are several basic kinds of records you to keep up with. Here are the ones you are most likely to need. You will find these forms and more details on how best to use them in The Basic Guide to Pricing Your Craftwork.:

  • Cash Flow Statement
  • Profit/Loss Statement
  • General Accounting Ledger
  • Inventory Log
  • Fixed Assets or Depreciation
  • Accounts Receivable
  • Accounts Payable
  • Payroll Log
  • Profitability Chart
  • Telephone Log
  • Mileage, Travel & Entertainment Log
  • Weekly Income/Sales Journal

If you haven't already opened a separate checking account for your business, you should do so. You can easily confuse business and personal transactions if they are both present in your personal checking account. When tax time rolls around, you'll be grateful you kept your business records separate.

A paper recordkeeping system will work well until you reach a point when increased sales take too much time to record entries by hand. At this point, using a computer will become more cost effective.

You will know that time is near when you find yourself spending more time than you can afford to spend looking up records, writing invoices, or trying to do a cash flow projection or balance report on the financial state of your company.

Another signal will be when you want to mail new product information or announcement of a special sale to 200 customers and you have to copy their names and addresses by hand.

There are many computer software programs to help small business owners manage their records.

QuickBooks by Intuit is recommended by the Small Business Administration and the program used by this author. For beginners, QuickBooks Online Simple Start is very easy to setup and customize for how to make a profit selling homemade crafts.

The above article is copyrighted and excerpted from the book The Basic Guide to Pricing Your Craftwork. by James Dillehay, member of the advisory boards to the National Craft Association and Visit

Most craft shows attendees haven't stuffed their wallets with large bills. Getting a merchant account so you can accept credit cards encourages buyers to go for higher ticket items.

Keeping your craft business records organized is a challenge. Sorting mail, notes and show contacts, receipts found stuffed in a pocket-aaak! Try Magnetic Mini Baskets for small receipts. Bill-Paying Organizers and Credit Card Receipt Organizers help you track business expenses, Magnetic Calendars track shows and and events. Mix and match systems. Create a system that works for you.

QuickBooks Online Simple Start, Essentials and Plus are Easy to Setup, Learn , and Use. Try Now FREE for 30 Days!

Charm Earring and Bracelet Packages are Quick to Make

Perfect for craft shows, flea markets, fundraisers, we've gathered popular theme charms bundled them with stretchy bracelets and earwires, so you just have to assemble and sell! We include instructions in case you're new to attaching charms.

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