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Tax Appointment - How Depressing!


SoyKandles
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We had our tax appointment today and things don't look so rosey now!! Yes, I made money, but the bottom line wasn't near as good as I thought it would be. I did buy quite a bit of shelving, some furniture pieces for display, and some work tables for my work room. (I moved my candle business into a building in September where I can make & sell my candles, lotions, etc.)

This is depressing!! :sad2: Should I quit what I enjoy doing and just get a full-time job elsewhere? :confused: I already have 2 part-time jobs plus my candle business. My gross sales went up one and a half times from last year, but the bottom line stayed about the same as the last year.

If anyone would want to share their experiences and get me out of the dumps, I would appreciate it!!

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From everything I've read, they say it can take 5 years before you see REAL headway being made.

You've made some big changes right? For the good, yet you still made 1.5 times more than last year.

I personally believe that as long as you are loving it, and are not beggaring your family in the pursuit of your dream, then do it.

But then, this is my third year. I don't tend to worry about the bottom line too much. Last year I doubled the profit from the year before. In the beginning there are always the "growing pains" costs that are a one time thing.

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Hi there, new to here myself, new to candle making and all that goes with starting to make a hobby into a business. My 'real life' day job is as an accountant, so fortunately it gives me a bit of a leg up on how to set things up from the point of finances and tax.

I would say that if it takes a visit to your accountant (perhaps just once a year) to find out you haven't done so well then you need to look at keeping more control of your own finances, so that you know on a monthly basis how well or how badly things are going. You really shouldn't be getting nasty shocks like that. I don't want to teach anyone how to suck eggs, but are you keeping your own financial records of sales and expenses?

Perhaps it's time to re-do your budgets and work out the real costs of your products versus what you are selling them for - it's easy to fritter away money without even realising it, so perhaps a spell of pulling in the reins and keeping track of every cent will show you where the money is going, just like you would with your own personal finances.

Another idea is to set yourself a period of say 3 months, where you will spend nothing other than what you absolutely have to and you may be surprised at some of the areas where you can make savings, for now and for the long term.

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i wouldn't worry about this year like you said you did 1.5 times more, the only reason the bottom line was the same was because you had to furnish a new building, your not gonna have to furnish a new building this year year so there should be less expenses this time. good luck and keep with it

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Thanks for all of your thoughts! I was so busy that I didn't take the time to do my candle books!! I finally forced myself before my appointment. Maybe I'm taking on too many projects!! I figured if I ended the year with $6,000 + in my checking account and I bought all of that stuff, I would have more of a profit. This year I'm definately making the bookwork more of a priority!! And I do need to refigure my prices to see if I'm on track. I'll keep making candles because I love to!!

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