Lesson Info
9. Covering the Bases: Labor and Insurance
Lessons
Intro & Overview of Bookkeeping
20:03 2Why Bother Bookkeeping?
17:50 3Your Sustainable Wage
12:26 4Cash vs. Accrual Accounting
12:17 5Chart of Accounts
13:12 6Understanding Cost of Goods Sold (COGS)
17:28 7Marketing and Selling
07:27 8Product Development
33:22Covering the Bases: Labor and Insurance
04:41 10Sales Tax: Consumption, Sales, & Service
10:48 11Understanding VAT
10:43 12Sales Tax: Retail & Prepaid
05:09 13Bookkeeping for Income
13:17 14Understanding Inventory & Equity
32:13 15Bookkeeping for Expenses
19:25 16Updating Your Inventory Effectively
27:16 17Tracking Your Expense Receipts
18:58 18Keep Business & Personal Separated
06:51 19Product Profitability
21:23 20The Value of Your Materials and Outsourcing
22:54 21Product Choices and Marketing Spheres
15:06 22Demonstrating Your Market Knowledge
23:29 23Documenting Money Flow
33:38 24Identifying Profit and Loss
25:50 25Budgeting Forecast and Goals
25:47 26Cash Flow Forecasting
25:32 27The Four Ps and the Importance of Pricing
07:24 28Pricing Formulas
08:18 29Pricing Etiquette Don't
16:12 30Return on Investment (ROI) of "Free"
18:59 31Focusing on Free
08:31 32When to Reinvest or Take Money Out
07:36 33Personal Finance
24:01Lesson Info
Covering the Bases: Labor and Insurance
Let's dive back into this uh we were looking at the chart of accounts and, um some of the things that we addressed have to do with paying people to do other stuff um so we're gonna look at some examples of those kinds of people and where you put them, um these next couple of sides are sort of my like frequently asked questions about chart of accounts these are the areas where people most often um have trouble figuring out where to put things so um depending on who the person is and what they're uh helping you with they go in one of these categories or another um so we talked a little bit about this already employees who make or package your products for you they would go in your cost of goods sold um and then employees who perform other functions in your company they would go in that employee wages account if they're doing administrative work remember we talked about the cost of goods sold account uh category being sort of trump category if you can put it in there and it makes sense to...
put it in there I would put it in there before categorizing your expense somewhere else like wages um if you have someone who's not an employee but they helped you, uh put together the products you're selling that would be under production labor again cost of goods sold um if you want, you can separate in your cost of goods sold um production labor, you know, employees, production, labor contractors or you call it production labor, wages versus production, labor however you wanna label it is kind of up to you, it's, whatever makes the most sense um, your craft fair booth buddy. Someone who comes and helps you sell things but doesn't help you make anything that's contract labor. So is the contractor who designs your new website or, um, perform some other service for you that's not one of those legal and professional services, right? Like bookkeeping or tax preparation? Um, that goes in the legal and professional services to the c p a who did your taxes? Um and that sort of breaks down where all of those labor categories go. So next we're going to look at, uh, some different kinds of insurance because that was another place where people had questions. Um so we talked about, uh, your own health insurance that doesn't go into your business expenses at all because it is not a cost of your business. It's a personal expense, your health insurance. If you are paying other people's health insurance like your employees, if your business is paying their, uh, benefits, then you would put that under the employee benefits category um if you were an employee of your company if you had one of those business structures that was more corporate um then you could put that in there as well. Um but for most crafters who our sole proprietor or a partnership or maybe even an llc um your health insurance would be a personal expense and not a business expense. You wouldn't include it in your ledger at all uh liability insurance we talked about a little bit that's for your business. Um so that would go in the insurance category. Um any insurance you have on your home or your, um apartment whether you own or whether you rent if it's part of your if you have a home office, then you can put that percentage of that insurance into your home office account. Um if you we talked about this a little bit too if you have a home based business and you have that special rider that just covers your home based business, the whole thing goes in the insurance category, right doesn't go in the home office even though it's insurance on your home office I know that that's kind of confusing but because not a portion of that it's for your business, the whole thing that whole rider that whole cost is a business expense you would put that in the insurance category and then finally auto insurance that goes under their car and truck, calculated at the percentage that you actually use that vehicle for business. Um, it does not go in the insurance category. But I know that it can be really tricky. Tohave all of these things, like contract labour and insurance. That seemed like one thing. But actually, you would track them in all of these different places.
Class Materials
bonus material with purchase
Ratings and Reviews
Bekah Kitterman
Months after watching the live broadcast of this course, I am still so glad I bought it. I find myself coming back to it over and over again just to refresh my brain on how to manage all of my numbers. I'm new at having a business and doing my own bookkeeping, and this course has been extremely helpful as a tool to help me set things up well and keep me on track. Highly recommend especially for those new to business and bookkeeping or intimidated by taking care of your numbers!
Aleks
There is so much fantastic information in this course that I had to purchase it even though I watched the free broadcast. It's real hands-on stuff, not a general description of what bookkeeping might be, but an actual guide to manage your business' finances. Thank you for all the insights and workbooks! I highly recommend this class.
Carla Sam
Wow, this course was jam packed full of insightful information (not just about book keeping!). Lauren was great at simplifying the process! Even though I watched most of the 2 days free broadcast, it was a wise investment to purchase the course and now I can re-watch at my leisure and fully take it all in. Thanks Lauren! :D