5 Tips for Keeping Track of Your CD Sales and Inventory

By Jack Rogers, Wonderdisc.com (more articles from this author) 2003-07-14

Comment | Email | Print | RSS

Keeping track of your CD sales and inventory can be a bit of a chore. It is especially frustrating trying to get it all straight when it comes time to pay your taxes or balance your books! Here are five tips for starting out right, or getting your current situation squared away.

1. Use a written system to track your inventory and sales. Log CDs "in" when you get new copies, and "out" when you sell them or give them away. If you have more than one title, this will help you know which ones are your best sellers. Knowing how many CDs you have on hand and how many you usually sell, will also help you know when you should reorder to avoid running out of stock. To download a free Excel spreadsheet designed to help you with this, go to: www.wonderdisc.com.

2. Think about how your inventory records will relate to your bank deposit records for sales income. Will you be able to match them up later? Comparing these two records can be especially helpful in resolving mistakes. For instance, if your inventory log says you sold 10 CDs at $15 each on March 3rd, but your deposit record says you deposited $165 for March 3rd sales, then you will know you probably forgot to enter 1 CD in your inventory log.

3. Record information in a timely fashion. The easiest way is to do it the same way every time. Make up a system that is easy for you to remember and follow. For instance, you can record sales on a per show basis, meaning all the CD sales from one show are entered as one transaction. Then, you could always deposit the money into your account on the next business day. This will make it easier to make sense of the records later. If you know you do things the same way each time, you don't have to try to remember how you did it each individual time. When you are looking back on a whole year's worth of sales, having used this sort of consistent system will make your life easier.

4. Make notes about where the money comes from. If you are depositing other income in addition to CD sales, like ticket receipts or T-shirt money, be sure to note the amount of each separate item in your deposit register. Even if the money is deposited together you can still make a note of how much each item (CDs, t-shirts, ticket money) contributed to the total deposit amount. Again, this will allow you to sort it out later if you need to.

5. Separate your business and personal accounts. This is vitally important both from the standpoint of improving your business, and in case you are ever unlucky enough to be audited by the IRS. Keeping separate business and personal records is one of the ways that you can prove to the IRS that your musical career is a legitimate business and not a hobby.

These are just some basic ideas to get you started. There are lots of other things you can do to make your CD sales and inventory more efficient, and to make the information you record more useful for you and your business. Fortunately, you don't have to figure them out for yourself. To learn more about inventory management, explore the business section of your favorite bookstore. Good luck with your CD!

Home » Career Tips » 5 Tips for Keeping Track of Your CD Sales and Inventory Permalink: http://www.musicdish.com/mag/?id=8333 Email | Print | Comment | RSS

back | top