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Keeping financial records of an eBay business

(3 Posts)
someoneseatenmyapple Mon 29-Oct-18 06:18:07

Can anyone recommend a resource regarding keeping financial records of an eBay business?

I'm struggling to get my head round the price paid for an item vs the amount you actually receive once the shop subscription and final value fees are deducted and then there's Paypal fees.

Should I keep an excel spreadsheet of each item sold and add in columns for final value fees and Paypal fees? Or is the lump sum fee I pay each month to eBay the only figure I need to log with PayPal fees? This seems a bit long winded. I just wondered if I'm overlooking the obvious.

Thanks.

Oblomov18 Mon 29-Oct-18 06:57:07

I think you may be looking st it the wrong way round.

No you need to keep a log of all the data.

What you bought things for.
The eBay fees are a cost to you, an expense.
Plus the later commission PayPal is also a cost to you. That too needs to be recorded in your accounts as an expense.

What you actually sold it for is one thing. What goes into your bank, is actual another.

Are you making profit?
Bought for £5.
Fees £1
Sold for £10
PayPal charges £1
In bank £9
You've made £3 profit.

Cuppatea10 Mon 29-Oct-18 07:08:23

Hi I'm a book keeper/accountant. You just need to keep a log of all invoices (so sales ones from customers on ebay). EBay also invoices you at the end of the month so keep these too.
The customer pays you what you asked for so that's recorded at that price in sales.Then the expense of ebay and PayPal fees with be recorded separately. Hope that makes sense.

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