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Originally Posted by Rick Lee
I warned her this was going to happen and today it did. She has an encyclopedic knowledge of what stuff can sell for on eBay and some Chinese fashion chat boards. So she finds bargains and flips the items. She had $29k in PayPal "income" and she has a shaky Excel sheet on what she paid for most items, eBay and PayPal fees paid, shipping and that's about it. There's probably 20 miles for each round trip to the post office. She's had plenty of disputes and returns too. How does she reconcile this? And what's the best way to keep it all straight going forward?
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Ebay sends out an e-mail for every purchase. Sort her inbox for find all of the purchases. This would be the Material Cost of goods sold.
Shipping: Credit card receipts is where I'd go.
Paypal should have records of the money coming in, which would be the gross revenue. You might also be able to see this in the e-mail inbox.
Driving, she needs to keep records. She could look at the number of shipments, multiply by the 2 way distance and then use that mileage for taxes.
Going forward, she is running a business. She needs Quickbooks. She can use the online version where you can record the information using phones, tablets and PCs.