Purchasing discounted items from stores with good return policies (such as Nordstrom Rack, Saks Off Fifth, and Neiman Marcus Last Call) is a great way to stock up on no-risk inventory--if the items don't sell, you can return them and get your money back. But you need to keep track of the return-by date for each item, or you may find yourself stuck with unsellable inventory.
If you flip new items for profit, or resell older, used items for profit, you're legally obligated to report this profit to the IRS. One benefit of this is that you can deduct costs associated with your reselling business--such as the cost of parking and gas if you go to a store to pick up an item, or the cost of storing inventory (if you have to rent a storage locker, for instance).
To keep track of expenses and other tax-related issues associated with your reselling efforts, download an accounting app such as FreshBooks. FreshBooks lets you create invoices, keep track of clients (the app is free if you have fewer than three clients), track time, track expenses, manage projects, and create estimates. As a reseller, you'll most likely be using the time-tracking and expense-tracking features; but if you're reselling offline, you can also use the invoices option to create invoices for particular clients.
You can use the time-tracking feature to create timesheets to help you keep an eye on how much time you're investing in your reselling efforts. The expense-tracking feature lets you log expenses; and if you attach a photo of each receipt, you can keep track of the money you spend on reselling-related costs.
Your mobile device is your best business asset
Whether you're an eBay Power Seller or just a casual closet cleaner, your mobile device can help you resell items for profit and to clear valuable shelf space. The five apps discussed here will enable you to keep track of your expenses, inventory, PayPal balance, and online auctions, and even to accept credit and debit cards for in-person sales. For coverage of more apps designed to keep track of your (hopefully) lucrative sales endeavors, check out this article on running a small business from your smartphone.
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