I’m based in the UK and recently started selling on eBay. I’m looking for guidance on how to properly record my sales in FreeAgent.
Currently, I’m entering the sales as “Sales” in the software, but I’m uncertain about what to include in the description. I typically use “eBay – Sale of [Item Sold]” and I attach a PDF of the transaction details from eBay.
Is there anything I’ve overlooked or should adjust?
Thanks for your help!
One response
It sounds like you’re on the right track with recording your eBay sales in FreeAgent! Here are a few suggestions to ensure you’re capturing all the necessary details:
Description: Your current description format is good, but consider adding more specific details. For example, include the item category for better tracking. You could format it as “Ebay – Sale of [Name of Thing Sold] (Category: [Category Name])”.
Invoice Reference: If applicable, mention any invoice or order number linked to the sale in the description. This helps with future reference and tracking.
Sales Tax: If you’re registered for VAT and applicable, make sure to account for VAT on your sales. Record it as needed, and ensure you’re handling the tax implications correctly.
Payment Method: If sales are through different payment methods (PayPal, eBay managed payments, etc.), you might want to note the payment method in your description.
Costs: Don’t forget to record any associated costs with the sale (like eBay fees or shipping costs) separately. This will help you better understand your actual profit margins.
Category: Make sure you’re recording your sales in a category that makes sense for your business for easier reporting.
Attachments: Attaching a PDF of the transaction details is a great practice, as it provides a clear record for your accounts.
If you follow these tips, you should have a tidy and informative record of your eBay sales in FreeAgent. If you have any further questions or if rules change, it could be helpful to consult with an accountant or bookkeeper familiar with eCommerce sales.