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BOOKKEEPING
Bookkeeping isn't about being an accountant - it's about knowing your numbers. When you track what's coming in and what's going out, you can see if your business is actually working. You'll know which products are worth making, whether that craft fair paid off, and what you owe at tax time. The goal isn't perfection. It's consistency.
What You Need to Track
No matter how you keep your records, these are the basics every maker should capture:
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Income - every sale, whether it's cash, Venmo, Etsy payout, or PayPal. If money came in, it gets recorded.
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Expenses - supplies, materials, packaging, shipping, marketplace fees, booth fees, equipment, and anything else you spend to run your business.
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Date - when the transaction happened.
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Category -what kind of expense or income it was. This matters at tax time.
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Notes - order numbers, receipt reminders, payment method. Anything that helps you remember the details later.
The Notebook Method
A notebook and a pen are a completely legitimate bookkeeping system - as long as you use it consistently.
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One page per week or one section per month works well.
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Draw out your columns, and at the end of each month, add up your income column, add up your expense column, and subtract to find your net. That's your profit for the month.
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The table below shows what a month might look like.
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Tip: Keep a small envelope or folder with your notebook for receipts. At the end of the month, match them to your entries.
Free Digital Tools
If you want to go digital without spending money, these options are a great starting point.
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Google Sheets or Excel - Build your own tracker using the same columns above. The math is automatic, and you can duplicate the sheet for each new month. Free with a Google account.
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Wave - Free accounting software built for small businesses. Handles income, expenses, and basic reports.
Paid Software
If your business is growing and you want more automation, reporting, and integration with platforms like Etsy or PayPal, paid software is worth considering.
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QuickBooks Simple Start - The most widely used small business accounting software. Connects to your bank, categorizes transactions automatically, and generates profit/loss reports. Pricing starts around $17–$30/month.
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FreshBooks - Popular with creative businesses and freelancers. Clean interface, easy invoicing, expense tracking. Pricing is similar to QuickBooks.
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Craftybase - Designed specifically for makers. Tracks materials, inventory, and cost of goods alongside your income and expenses. A solid choice if product costing matters to your pricing.
Bookkeeping & Taxes Go Hand in Hand
Good records now mean far less stress when tax time comes.
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Whatever tracking system you use, keep your receipts (digital photos count) and note what each purchase was for. Many of your everyday business expenses are deductible, and your bookkeeping records are what prove it.
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For a full breakdown of deductions, what to expect as a self-employed maker, and when to bring in a professional, visit our Taxes resource page.