Suggestions for best practice and habits for Canadians with regard to personal taxes and Ebay

[itolduandso]

Okay, I must admit I was not very good with keeping the order in things related to selling activity, taxes etc on Ebay, it was mostly proctastination and day-before-yesterday rush to put together things when it comes to filing taxes for ebay stuff.

I am planning to get dilligent and wondering what is the best way to do that. I do not have a personal bookeeper and no plan to get it. I may need to start filing GST when things continue but not until the next year. I am well aware I will need to get tax advice then.

Right now I want to start being dilligent and having things in order.

Here is what I do right now:

1. From the page https://www.ebay.com/sh/ord   I download the sales report in CSV (from the link on the top right of the view).I upload the report to my database and also use the report to create picklist of things I need to send.  The picklist has barcode of the ebay order number and sales record number. That helps me to know what package goes where when creating the labels from ChitChats and Stallion.

Question: Is this the best place (the best way) to download the sales report? 

2. I sync the bank transactions into my local database. The accounts I use only for selling (no personal transactions). 

Question:  Is an electronic record of transactions enough?  Or do I need to download the official bank statements in PDF every month and save then? 

3. The save database I use to keep expenses (e.g. postage, purchase invoices etc, uber expenses related to trips with packages etc). I save the email confirmations when purchase the credit for ChitChats and Stallion. 

Anybody who is familiar with this... are you downloding any months statements for ChitChats and Stallion for tax purposes?

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What else you guys do to stay on top of things related to Ebay sales to be ready when the time comes?

What reports do you download reguarly?

Any other suggestions?

I know this is an open question and everybody's opinion and process is different. I haven't done this the right way so please feel free and share.

Thanks.

(PS: I don't thnink I have the necessary patience for an accounting software but I am more than capable to do it the  http://www.pierrelebel.com/lists/P&L-sample.htm way.. )

[itolduandso]

Also, regarding ebay expenses, do I need to separate the sales from what ebay charged on selling fees? Or can I consider the ebay payout to be the net sales and the selling fees are already included (so no extra expenses). 

I haven't done this since Paypal days and at that time the ebay and paypal fees were separated.

If I need to keep ebay fees separate, what reports dow you download?

[itolduandso]

Hmm, nobody didn't want to respond, so my guess this isn't a popular topic or my question was confusingly long or boring, or both, okay.

So I have a simple question:

What records do I need to keep when it comes to ebay selling or other platforms and income taxes?

Say I sell on Ebay, Bonanza, Poshmark, Facebook Marketplace, Kijiji etc..

1. CSV report from ebay is enough?

2. Do I need to print and save a PDF and paper copy of the packing slip?  (There isn't really any invoice in ebay and I don't really have a desire to create one just to have it).

3. If there is no packing slip, do I print a copy of the website?

4. If there is SMS messages confiming a sale, do I take a screenshot of the text messages?

4. If I sell for chash on Kijiji or Facebook Marketplace do I ask the other person to sign a paper I sold it to them? 

I am just a private seller, no company, no business. 

How much effort is required to document my sales?  Let's assume I am submitting the tax truthfully and honestly.  I am wondering what records I need to save. 

What do you guys save, print, export for records etc on regular basis (daily, monthly, yearly etc) to keep for CRA in case inquires?

Many thanks

[recped]

You can get basically all your eBay data by running a Transaction report, it will include sales, eBay fees, taxes collected by eBay, taxes collected by seller (for when you are GST registered), postage purchased through eBay, subscription fees (Store), Promotional fees etc.

https://www.ebay.ca/sh/fin/report

Data is available there on a two year rolling basis, it downloads as a .csv file that you can manipulate in  Excel.

Seperate from that you will need to track you purchases of inventory and any other expenses related to eBay (postage,  packaging materials, travel etc.)

If you are selling on  other platforms you'll have to do similar but I can't provide any specifics.

[recped]

I may need to start filing GST when things continue but not until the next year. I am well aware I will need to get tax advice then.

GST is actually very simple, not much need for advice in your situation,  you track the amount of GST/HST collected and you track your GST/HST paid (Input Tax Credits), you only need 3 numbers (Total Sales, Tax Collected, Input Tax Credits) to complete the returns.

[recped]

That's all I have time for at the moment (Rapotors game in 5 minutes), some of your questions are rather general and basic, once you have gotten a little further along and have a specific situation feel free to come back and ask.

One last thing, open a seperate bank account strictly to use for "business" purposes and do not intermingle with personal transactions.

I would recommend Siimpli, you don't need a "business" account, so their accounts are pretty much no-fee and from experience they work very well with eBay's payment system. I'm on weekly payouts (Tuesdays), the funds are in my account by 5:00pm Tuesday (same day). Some other banks, especially credit unions can take an additional 1 - 3 days for transfers to show up. (Tangerine might be just as good....no personal experience).

[itolduandso]

Great. That is helpful. Thank you for responses.

[itolduandso]

Bank account:

I do pay for shipping and other ecommerce sites platform fees with my personal credit card. 

So I wonder should I also use a separate credit card to pay for fees?   

I have the shipping invoice to show I was invoiced and charged.