How do you calculate your sustainable wage? So we mentioned that freelance rate calculator, but I wanted to give everybody who does not have access to that a little formula that you can use, go ahead and screen shot that if you want, um, figuring out your sustainable wage is your business expenses, plus your living expenses like we discussed divided by the number of hours you spend making. So in that example I gave earlier, we had a thousand dollars a month in business expenses plus four thousand dollars a month in personal expenses divided by roughly eighty eight hours per month, making on that comes out to fifty six dollars in eighty one cents per hour. Um, I put in eighty eight hours per month because that's, roughly half the week spent actually making things that's really pretty good if you have your own business amanda's nodding her head she's, like europe is sure is, um if you are managing to spend really like half your time or more actually making products for your business that...
's huge on dh very rare, I might add, uh, typically you're spending at least half the time unjust running the business on listing things on etsy on packing and shipping things on ordering supplies are going out and picking up materials. You're doing your marketing and your social media you're answering customer service e mails you're trying to land new wholesale accounts all of that other stuff typically takes up at least half if not more of your business so um because you're only making money off of the products that you create you can on ly consider the number of hours that you are creating value when you do this calculation s o I've also put in on the end there in green a sort of a little side thing times one point three and this is for the u s viewers on lee if you want to take your taxes into account um you would multiply this by one point three that would add thirty percent to your costs ah because you will have to pay as a self employed person in the united states fifteen percent in self employment taxes that is your social security and your medicare and then probably at least another fifteen percent in income taxes so taking thirty percent and adding it there will also take your taxes into consideration in the u s I don't know the tax rates are anywhere else so that's why I put it in green and sort of off to the side um and I don't believe that I included the one point three in my calculation down here I think that's without the one point three set seem like it makes sense that seems about right.
Easily integrate your Etsy® transactions into your small business bookkeeping with tips and insights from Lauren Venell in Bookkeeping for Etsy Sellers.
Lauren is on a mission to simplify small business bookkeeping for crafters and artists.
In this class you’ll learn how to:
- Manage Etsy transactions, inventory, and expenses
- Compare Etsy earnings against other income streams
- How to integrate Etsy into your overall bookkeeping
- Spot sales patterns and identify opportunities for growth or restructuring based on the numbers
- Set up and track your shop account
- Deal with Etsy credits
- Manage sales tax and coupons
Etsy's systems are overwhelming – this class will give you the clarity you need to successfully run your Etsy shop.
Whether you are exclusively an Etsy seller or its just one of many revenue streams, this class will make Etsy transactions easy to handle and every aspect of your business bookkeeping more manageable and fun.
Be sure to check out Lauren's other course Bookkeeping for Crafters.