What is the Schedule C Guidance Report?
The Schedule C Guidance report brings together all the important inventory tallies that you need for filing a IRS Form 1040 Schedule C. It also provides some of your revenue and expense tallies that can be useful to complete this form. This form is required to report income or loss from a US based business you operated as a sole proprietor. Full IRS instructions for completing the Schedule C form.
How to find this report:
Navigate to your Reports page, then click the Schedule C Guidance under the General heading.
To run this report:
Select the date range you wish to view from the Date Range boxes, then click the Run Report button.
The method you are using to calculate your total income and expenses. Craftybase uses the Accrual method where all expenses and revenue are tallied in the financial period when received (i.e. not when paid). More details about accounting methods can be found in our help article here: What's the difference between accrual and cash based accounting?
Gross Receipts (Including Returns): The total revenue received in this financial period, excluding any sales tax collected. The amount of sales tax collected can be found in the hover help text for this section.
Please note: Returns are already removed from this amount and will need to be calculated separately to provide the figure for Part I Line 2. How do I calculate my total order refunds?
All indirect expenses (i.e. not related to the purchase of materials used in manufacture) are listed based on the categories you have created and assigned to your non material ("Other") expenses. If your categories are different to the ones expected in your Schedule C, then they will need to be merged, changed or alternatively mapped to the correct categories manually.
Note: Craftybase does not calculate estimated, sales and state taxes (i.e. 23: Taxes and licenses). If required, you'll want to calculate these amounts separately and add to your filing based on your accountant's recommendations.
III Cost of Goods Sold
Method used to value closing inventory: Craftybase applies weighted (rolling) average cost calculations to all materials used in your manufactures.
Inventory at beginning of year: The total value of all materials in stock on this date, plus the material cost of all unshipped stock. Your internal labor costs are not included in this total, it is materials cost only.
Purchases less cost of items withdrawn for personal use: This is your total inventoriable material expenses for the year, minus any material and product inventory adjustments you have added in the year with a category of "Personal Use".
Inventory at end of year: The total value of all materials in stock on this date, plus the material cost of all unshipped stock. Your internal labor costs are not included in this total, it is materials cost only.
This report can be downloaded a print-friendly PDF or a CSV for further analysis in a spreadsheet.