This set of materials completes the course materials for the class. Though the formal class is ending, group members are encouraged to stay on as members, and to post new accounting questions that are bound to arise, and to answer questions by others. The materials will be opened up to the general membership after our last class, so there may be a flurry of questions. Please do not ask George to take all of them on.

By now you should not be at a loss when you think about how to go about tracking the transactions that are commonly occurring with your business. We have not covered all of the activities that you may need to include in your books, such as sales tax, and payroll if you have employees. Payroll is beyond the scope of our introduction to accounting.

The Web site offers the following concise plan for accounting for sales tax.

  1. “Add the sales tax to the cost of equipment you purchase for your business. For instance, if you buy a cash register for $200 and must pay 8 percent in sales tax ($16), record the cost of the cash register on your books as $216. You do not need to distinguish purchase price from sales tax in your books.
  2. Depreciate the asset as normal, treating the value of the asset as the purchase price plus sales tax. For instance, you should depreciate the cash register as if its value is $216 rather than $200.
  3. Include the sales tax you charge customers as income in your gross receipts only if your state imposes sales tax on you (the merchant) rather than on the customers. If the state requires that you collect sales tax imposed on the buyer, the price you charge should be recorded on the books without sales tax, and the amount collected as sales tax should be recorded as a liability.
  4. Remit sales tax to your state on the appropriate schedule set up by your state. If sales tax is imposed on you (the merchant), record sales tax as an expense. If sales tax is imposed on the buyer and you are required to collect it on behalf of the state, offset the entry you made in the liabilities section.”

Read more: How to Account for Sales Tax |

There are several more activities you do need to know about to generate accurate current reports on your business’ health.  These involve closing out your books for a given period of time.  You have to do this at the end of the year for your tax reporting, but it really should be done every month or two so you know how your business is doing. For a rundown of the procedures, read the articles at:

You will find that some account balances such as revenue and expenses will be transferred to Owner's Equity, to start out the new period with a zero balance.  


Finally, if you want to learn more about different categories of business management, the beancounter site has more tutorials to look through at:

Views: 84

Replies to This Discussion

Thanks George for organizing the course and keeping us at it. I got everything I needed from our activities and discussions, and more.

On another matter. Somehow my logo seems to come up in almost every group's reply box. Don't know how it got there, but it appeared just after I uploaded my logo. Hopefully there is a way to get rid of it. Let me know if I need to do something, or if you, as admin, can fix, it I'd appreciate it.




  • Add Videos
  • View All

Use These Links to Support Us

Low cost flat lapping disc can be used on you potters wheel if you, drill bat pin holes in it, and provide a trickle of water to cool it. At, 120 grit for aggressive material removal. Click the image to purchase 

Members have had great things to say about John Britt's new book, Mid-Range Glazes. Click the image to buy from

Purchase Glazes Cone 6 by Michael Bailey, The Potters Book of Glaze Recipes by Emmanuel Cooper, or Making Marks by Robin Hopper, all available at amazon.comMastering Cone 6 Glazes by John Hesselberth & Ron Roy is now out of print.

Harbor Freight is a great place to find unbeatable prices for better HVLP spray guns with stainless steel parts and serviceable economy models, as well as detail guns, all tested by our members for spraying glazes, as well as compressors to power the guns. As yet no one has tested and commented on the remarkably inexpensive air brushes at harbor freight.

The critter siphon gun is a spray alternative that is well liked by some of our members, and is available at amazon.

Amazon is also a competitive source for photo light tents for shooting professional quality pictures of your work. They also have the EZ Cube brand favored by several of our members. You might also want to purchase the book Photographing Arts, Crafts and Collectibles . . .

If you are up to creating videos of your work or techniques you might want to invest in a flip video camera

Following are a few scales useful for potters. Ohaus Triple Pro Mechanical Triple Beam Balance, 2610g x 0.1g, with Tare $169.00

And finally a low cost clone of the OHaus. The Adam Equipment TBB2610T Triple Beam Mechanical Balance With Tare Beam $99.62

ebay is a great alternative for many tools and the equipment used in the ceramics studio - kilns, wheels, extruders, slab rollers are often listed there both new and used.

Tips for Members

If you just want to spout off, it is best accomplished as a blog posting. If you want to get more guidance and ideas from other members, ask a question as a new discussion topic. In the upper right corner of the lists for both types of posting, you will find an "+Add " button. Clicking it will open an editor where you create your posting. 4/16/2014

© 2022   Created by Andrea Wolf.   Powered by

Badges  |  Report an Issue  |  Terms of Service