Could you please give me some advice on how to report any sales made off of new items that are sold on sites like eBay?
I am not registered with a business number and I do not collect sales tax. I handmake items and sell online. I don't sell a lot but by end of year, I may make approx $1-2K.
- How do I report this "income"?
- Where do I account for the expenses incurred to make this money
- Would it be better for me to register as a business to be able to write off things? I know it's not mandatory to incorporate unless you are selling $20K+...
At some point, you should latch on to a simple accounting program. When you sell a product in another province, you will have different GST/HST/PST rules to apply. Once it is set up, the sales tax is handled automatically and when you do your GST/HST remit to the Feds, it is a nice simple process.
Living in BC, I have found the switch to HST to be a real boon. I am pissed off that we have to switch back to the old GST/PST.... arrgghh.
HST is great for business, sucks for consumer (especially at the pump).
IMO for someone doing a little business on a side generating couple of grand of sales there is no need for accounting software, excel is more than enough.
Thanks for the advice. In your opinion, how granular do I need to be on the reporting? For example, if I buy supplies but haven't used it all up, do I just report the portion that I did use?
The supplies that are not used up by the end of the year should not be expensed because they are your inventory (asset), however in your case the amounts are so insignificant that I wouldn't worry about splitting it up.
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