Reviews of Outright accounting - a popular software package for Etsy shop owners

In case you haven't heard, Outright is a popular bookkeeping software for Etsy shop owners and crafts business owners. I have been curious about it for sometime and how it compares to QuickBooks. I am a QuickBooks expert and I use QuickBooks for my business so I wanted to know more about Outright from actual users.

Here are a few reviews:
The Work At Home Wife gives a very thorough review . She concluded that QuickBooks online will work better for her business.

Small Business Trends also has a very detailed review, including printscreens. They say "if you’re a sole proprietor, or a new entrepreneur, or you run a small home-based business, Outright is a great place to start keeping your books."

factoidz points out key differences between Outright and other programs such as QuickBooks. They also include customer feedback from actual users.

I hope that these reviews help you decide. You can always try Outright free for 30 days. Keep in mind ease of use, the size of your business, and what Outright will do versus other more robust software packages like QuickBooks.
For a free article "10 Things You Must Know About Taxes, Bookkeeping, and Business Licenses" and for free Excel worksheets just for Etsy shop owners and creative entrepreneurs visit my website.

Stop worrying. Save hours of research online. Check out these Tax, Business, Accounting and Bookkeeping PDF e-book guides written by a CPA and creative entrepreneur just like you. Available for instant download.

Should you use QuickBooks for your Etsy shop or crafts business?

This is a very common question in the crafty and Etsy forums. Should you use QuickBooks for your Etsy shop or crafts business? It depends.

Newbies
If you are relatively new and don't have a lot of extra funds yet, you can use a simple Excel bookkeeping worksheet.

Your business is growing
If your business is growing and you have excess funds then you should consider using QuickBooks. Keep in mind that just because you use QuickBooks you are not guaranteed that your bookkeeping will be in order. Think of it this way, you don't drive a car if you haven't had driving lessons. When you purchase QuickBooks you may need to pay a QuickBooks expert to set it up for you and to show you how to use it correctly and specifically for your crafts business. You should budget approximately $150 for purchasing QuickBooks and at least $300 for paying the QuickBooks expert for their services.

You replaced your day job with your Etsy or crafts business
If you have been able to replace your day job then you really need to get your bookkeeping in order so that you can manage your business properly and pay your taxes. In this case, you should defintely be using QuickBooks and consider hiring a bookkeeper so you don't have to do it all yourself.

There are of course other software products out there for Etsy shop owners and craftypreneurs, including Outright. Check them out and determine what's best for you. The main thing to remember is that any accounting software that you purchase does not guarantee that you will set it up correctly or use it correctly. Consider the funds that you have available and the size of your business.

For a free article "10 Things You Must Know About Taxes, Bookkeeping, and Business Licenses" and for free Excel worksheets just for Etsy shop owners and creative entrepreneurs visit my website

Stop worrying. Save hours of research online. Check out these Tax, Business, Accounting and Bookkeeping PDF e-book guides written by a CPA and creative entrepreneur just like you. Available for instant download.

Simple Excel bookkeeping spreadsheet for Etsy shop owners and craftypreneurs

If your crafts or Etsy business is small and you don’t want to get too complicated with your bookkeeping and accounting then you can use a simple Excel worksheet to track income and expenses.  If you use Excel, you can set up the worksheet on Excel. You can download a free Excel worksheet from my website when you join my mailing list.

The advantages of using a simple bookkeeping and accounting worksheet for your Etsy and crafts business are ease of use and low cost.  The disadvantage of using a worksheet is that you have to add up transactions manually to record onto the worksheet.  Also, a worksheet does not provide you with financial reports like a computerized bookkeeping and accounting system does. 

You can download a simple Excel bookkeeping and accounting worksheet from my website. You can use to it to track business income and expenses on a monthly basis.  The categories used match IRS “Schedule C”.  IRS “Schedule C” is the form that is used to report income or loss from a business organized as a sole proprietor on IRS Form 1040 – an individual tax return.  By using this form you will save lots of time when you file your individual tax return since everything will already be categorized. 

For a free article "10 Things You Must Know About Taxes, Bookkeeping, and Business Licenses" and for free Excel worksheets just for Etsy shop owners and creative entrepreneurs visit my website.

Stop worrying. Save hours of research online. Check out these Tax, Business, Accounting and Bookkeeping PDF e-book guides written by a CPA and creative entrepreneur just like you. Available for instant download.

Have you paid your estimated tax payments for your Etsy shop or crafts business?

Many small business owners and Etsy shop owners get into trouble with the IRS because they do not make estimated tax payments or they do not have the funds to pay the IRS for taxes on their crafty business when they file their income tax return.  This is what you need to know:

1.     If you are organized as a sole proprietor (you file Schedule C) - your business profits are subject to federal income taxes and also self employment taxes (due to the IRS).

2.     You have to set money aside to pay for federal income taxes and also self employment taxes.

The IRS wants you to make “estimated” payments on a quarterly basis for the taxes that you estimate you will owe.  If you do not make estimated tax payment the IRS may charge a penalty.  Estimated tax payments are due on April 15, June 15, September 15, (of the current tax year) and January 15 (of the following year). In other words, for 2011, you would pay estimated tax payments on April 15, June 15, and September 15 of 2011 and on January 15^th of 2012. 

Most small business owners do not like to make estimated tax payments because they think it’s inconvenient. You can make estimated tax payments online or on the phone using www.EFTPS.com – it’s easy and convenient. Many small business owners also do not like to pay the IRS for income and self employment taxes because they don’t have the money or just don’t like to. I understand how they feel but look at it this way –your employer (if you are employed)  deducts taxes from your paycheck. In the end we all pay taxes. The best thing to do is to make sure that you put money aside to pay for estimated taxes. Make sure you do that or you may get into trouble with the IRS.  For more information, refer to Publication 505, Tax Withholding and Estimated Tax http://www.irs.gov/publications/p505/index.html.


For a free article "10 Things You Must Know About Taxes, Bookkeeping, and Business Licenses" and for free Excel worksheets just for Etsy shop owners and creative entrepreneurs visit my website.

Stop worrying. Save hours of research online. Check out these Tax, Business, Accounting and Bookkeeping PDF e-book guides written by a CPA and creative entrepreneur just like you. Available for instant download.

Business income and business expenses - a primer for Etsy shop owners and craftypreneurs

On my last post I talked about the importance of separating business income and expenses from personal income and expenses. Let's look at the definition of business income and business expense.

Business income refers to money you have earned in your business. Business expenses refers to money you have spent on your business. The IRS also defines business expenses as “the cost of carrying on a trade or business.”  The IRS also indicates that business expenses must be “ordinary and necessary.”  The IRS points out that “an ordinary expense is one that is common and accepted in your trade or business.  A necessary expense is one that is helpful and appropriate for your trade or business.”  For more information see IRS Publication 334 – IRS Tax Guide For Small Business.

For a free article "10 Things You Must Know About Taxes, Bookkeeping, and Business Licenses" and for free Excel worksheets just for Etsy shop owners and creative entrepreneurs visit my website.

Stop worrying. Save hours of research online. Check out these Tax, Business, Accounting and Bookkeeping PDF e-book guides written by a CPA and creative entrepreneur just like you. Available for instant download.