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It's easy to ignore the time you've spent making something you love and you might even consider it .

However, your time is precious even when doing something you love. Decide on your hourly rate. How? Look at how much everyone else is earning or just how much you would like to earn per item you make be it etc. Once you have a number here's your formula:

Time Taken to make product [2 hrs] x Hourly Rate [USD10]

2 x 10 = USD20

USD20 becomes your labour cost for 1 bag or product you make.

Bookkeeping begins with setting up each necessary account so you can record transactions in the appropriate category. Remember, a freelance graphic designer and a bakery owner will not have the same accounts, however, they will share these common accounts.

Here are the 5 [five] common types of accounts:

Assets - The cash and resources owned by the individual/business [e.g., accounts receivable, inventory, buildings]
Liabilities - The obligations and debts owed by the business [e.g., accounts payable, loans]
Revenues or income - The money earned by the business [e.g., sales]
Expenses or expenditures - The cash that flows out of the business to pay for certain items or service [e.g., salaries, rent]
Equity - The owner’s equity account follows the amount each owner puts into the business and the value remaining after are subtracted from , representing the owner’s held interest in the business [e.g., stock, retained earnings].

Retained Earnings
The retained earnings account tracks the business profits that you reinvest into the business. This is money you don’t keep for yourself or payout to other owners.

Having a account is a must and can help prevent your business from crumbling especially when operating in tough economic climates or a seasonal industry such as and .