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on 22-05-2013 01:27 PM
Hi, I run a separate Ebay business to this one which turns over $74,000 per year. I simply access end of month sales data and 120 day sales data from summary page. I keep a record of these for sales on my tax return. I also check feedback results and click on the icon for silver power seller details. This gives me exact 12 month sales totals in U.S dollars. This is the figures I present for taxable sales. Every month I record purchases offline in a notebook, and all online purchases are paid with Paypal. Go to Paypal account. click money sent icon, 5 minutes with the calculator to add them up, all done. At the end of the financial year, go to current listings and add up the totals at the bottom of each page. Estimate average mark up percent, plus unlisted stock on hand. Stocktake done. I only charge actual post cost, plus packing materials, so other than keeping receipts in a black bag each year in case audit, nothing to record there. All up it takes less than two hours to record all data for tax using these methods. ( all methods approved by very experienced accounting firm, which lodge my tax for this business plus a couple of other businesses I run ) I have 1600 - 1700 listed items and 2000 sales per year. GST.- DONT DO IT !!! if you can possibly avoid it. Keep sales under $75,000 per year.( GST Threshold ) All of that tax comes straight off your profit margin unless you are not charging full price now. To take home the same profit you may need to sell $100, 000 just to make the same amount of money. ( and do all of the extra packing and listing for free ) The workload for GST is a real pain in the butt, and the tax office gets grumpy if you are a day late or not quite right. I have run separate GST registered businesses since the system came in and still hate it. ( I reduce new listings and bump my price up if I sell too much in a month ) If you want to sell more than $75,000, start another account in a partners name. This way you can sell $150,000 before needing to charge GST. I have found the answer to making serious money on Ebay ( $1000 profit for 2.5 days per week ) is find a nieche product with very high profit margins. Something you already know about, and high value items. ( minimum $20 and the more expensive the better) Its hard to make money selling $2.99 kids clothes against 500,000 similar listings. My business has only been going 2 years and I gave up my day job after 12 months. In spite of all the wingers on Ebay forums, it can still be done. All the best to everyone in the Ebay community, hope this helps.