If you make wreaths to sell, you probably know exactly where to find your favorite ribbon or deco mesh. But could you quickly answer how much you spent on supplies last month, what your selling fees totaled, or how much money your business actually earned?
That is where bookkeeping for wreath makers comes in. You do not need an accounting degree or complicated software to get started. You need a consistent way to record what comes in, what goes out, and what materials are tied up in wreaths you have not sold yet.
This beginner-friendly guide walks through a realistic recordkeeping system for handmade wreath sellers, whether you sell online, take custom orders, or participate in craft shows.
Quick Answer: How Do You Keep Books for a Wreath Business?
Start with three records: a sales log, an expense log, and a materials-and-inventory log. Record the full sale, not just the deposit arriving in your bank. Save receipts, separate selling fees from revenue, and review your records each week. At the end of the month, compare sales with the costs of producing and selling your wreaths.
Table of Contents
What Is Bookkeeping for Wreath Makers?
Bookkeeping is the routine of recording and organizing a business’s financial activity. For a wreath maker, it includes recording:
- Wreath and custom-order sales
- Refunds, discounts, and customer shipping charges
- Marketplace, credit-card, and payment-processing fees
- Purchases of ribbon, deco mesh, wreath forms, signs, greenery, and other supplies
- Materials actually used in completed wreaths
- Postage, packing materials, craft-show fees, advertising, and other operating expenses
- Amounts withdrawn by the owner, kept separate from ordinary business expenses
Bookkeeping is different from pricing. Pricing helps you decide what to charge before a wreath sells. Bookkeeping helps you see what really happened afterward. If pricing is still a challenge, begin with our how to price wreaths for profit guide, then use the process below to compare your estimates with real results.
Step 1: Keep Business Money and Personal Money Separate
Using a dedicated business checking account and, when practical, a business payment card makes your records much easier to understand. You can match supply receipts to transactions without sorting through groceries, gas, and personal shopping.
If you occasionally pay for a business purchase with personal money, record what happened and save the receipt. Also record when you take money out of the business for yourself. An owner’s withdrawal is not automatically a deductible business expense; the treatment depends on your business structure.
Set up a simple digital folder for each year. Inside it, create folders for sales reports, supply receipts, shipping, marketplace statements, craft shows, and taxes. Consistent filenames such as 2026-10-ribbon-supplier-receipt.pdf make documents easier to find.
Step 2: Create a Simple Wreath Sales Log
Use a spreadsheet, bookkeeping app, or another reliable system to capture each order. Useful fields include the order date, order number, sales channel, product revenue, shipping charged to the customer, discounts, refunds, sales tax collected, fees, and payment status.
| Example Sales Record | Amount |
|---|---|
| Handmade football wreath | $100.00 |
| Shipping charged to customer | $15.00 |
| Sales tax collected and remitted by marketplace | $7.00 |
| Total customer payment | $122.00 |
| Sales revenue, before fees | $115.00 |
In this example, the platform collects and remits the $7 sales tax. That amount is not treated as the seller’s revenue. If the seller instead collects tax and is responsible for remitting it, that money should be tracked as an amount owed rather than treated as profit. Tax rules differ by state and selling channel.
For custom orders, retain the original invoice, deposit information, final payment, and refund history. The accounting timing of customer deposits can differ depending on your method of accounting, so avoid assuming every advance payment is automatically earned revenue.
Step 3: Record Expenses in Useful Categories
Every purchase should have a date, vendor, amount, description, payment method, and receipt. Choose categories that help you make decisions, such as:
- Wreath materials: ribbon, mesh, signs, frames, picks, ornaments, glue, and floral wire
- Packaging: shipping boxes, tape, packing paper, and protective materials
- Shipping: carrier postage and label costs
- Selling fees: marketplace commissions, listing fees, and payment processing
- Marketing: paid advertising, printed promotions, and applicable photography expenses
- Craft shows: booth rental, event advertising, travel, and eligible event-related expenses
- Administrative expenses: website hosting, software, insurance, bookkeeping, and supplies
Some purchases, including inventory and certain equipment, may need different accounting treatment rather than being deducted immediately. Track what you paid, what you purchased, and how it is used, even when the tax treatment is not yet clear.
Example Expense Log
| Date | Vendor | Category | Amount |
|---|---|---|---|
| Oct. 2 | Ribbon supplier | Materials purchased | $72.00 |
| Oct. 3 | Shipping carrier | Postage | $24.50 |
| Oct. 5 | Marketplace | Selling fees | $12.00 |
| Oct. 8 | Craft-show organizer | Booth fee | $75.00 |
These are example entries, not a rule that each item has the same tax treatment. The purpose of the log is to make sure the transaction is recorded, categorized, and supported.
Step 4: Understand Why a Marketplace Deposit Is Not Your Sales Total
One of the most common bookkeeping mistakes is counting only the amount deposited into a bank account. A selling platform may deduct fees—and handle sales tax—before releasing your money.
Continuing the example above, the customer pays $122. The marketplace remits $7 of sales tax and deducts $9 in selling and processing fees. The amount deposited to your bank is $106.
| Transaction | Amount |
|---|---|
| Wreath plus shipping revenue | $115 |
| Marketplace and processing fees | ?$9 |
| Deposit to bank | $106 |
Your records should show $115 in revenue and $9 in fees, not just $106 in sales. You would record the actual postage cost separately, too. The deposit is a cash movement—not a complete income statement.
Important: This is an illustrative example, not a statement of any platform’s current fee schedule. Refunds, withheld funds, ad charges, payout delays, and other adjustments can change your actual reconciliation.
Step 5: Track Wreath Supplies That You Buy and Use
Craft supplies can be tricky because one purchase may produce several wreaths. A roll of ribbon might be partially used today, with the rest waiting for a future order. The cost of materials used in a sold wreath is different from the cash paid to stock your shelves.
Example: Calculating the Cost of Ribbon Used
Suppose you buy a 10-yard roll of wired ribbon for $18, excluding any additional costs that should be allocated to the purchase. Your basic ribbon cost is $1.80 per yard. If a wreath uses 2.5 yards, the ribbon portion costs $4.50; the other 7.5 yards represent $13.50 of remaining cost in this simplified example.
Track your supplies using a log with columns for item, quantity purchased, total purchase cost, units used, cost allocated to finished wreaths, and remaining quantity. You can do this by the roll, yard, piece, or another practical unit.
What About Unsold Wreaths?
An unsold finished wreath may contain $30 or $50 in materials even though you have not received any customer payment for it. Knowing what is sitting in finished inventory helps you avoid purchasing more supplies than you can realistically use or sell.
Inventory treatment can affect taxes. The IRS Tax Guide for Small Business (Publication 334) explains the usual cost-of-goods-sold calculation and special inventory options available to qualifying small-business taxpayers. For financial management, it is still helpful to track the materials in finished wreaths and unsold stock even if you qualify for simplified tax rules. An accountant can help you choose a consistent method appropriate for your business.
Step 6: Prepare a Monthly Wreath Business Profit Report
A monthly profit-and-loss report can help answer the question: after selling wreaths and paying business costs, what remains?
Here is a simplified example for a small wreath business. The numbers are hypothetical, and the inventory figure represents materials associated with products sold—not necessarily all materials purchased that month.
| Monthly Profit Example | Amount |
|---|---|
| Gross sales | $2,000 |
| Customer refunds | ?$100 |
| Net sales | $1,900 |
| Materials used in wreaths sold | ?$700 |
| Shipping and packaging | ?$300 |
| Selling and payment fees | ?$160 |
| Advertising | ?$120 |
| Software and craft-show fees | ?$140 |
| Profit in this simplified example | $480 |
That $480 is not the same as $480 in take-home pay. The example does not include every possible expense, income tax, or compensation for the owner’s time. Actual financial-statement treatment of labor, inventory, and owner compensation depends on the business and accounting method.
Also remember that profit and cash flow are different. You might have a profitable month while spending substantial cash on ribbon and decorations for wreaths you expect to sell later.
Step 7: Follow a Weekly and Monthly Bookkeeping Routine
You do not have to save everything for the end of the year. A short, consistent review is usually less stressful than reconstructing months of transactions.
Every Week
- Enter orders, discounts, refunds, and customer shipping charges.
- Download statements for the platforms and payment processors you use.
- Record fees and match each payout to the related sales.
- Save invoices and receipts for materials and other purchases.
- Update the materials used in wreaths you completed or sold.
- Match recorded transactions with bank and card activity.
Every Month
- Review total sales and refunds by sales channel.
- Calculate costs tied to wreaths sold, using your consistent method.
- Review postage, packaging, platform fees, craft-show costs, and other overhead.
- Review money spent on inventory that is still unsold.
- Compare your monthly results with your budget and previous months.
- Back up files and investigate any missing transactions.
If you sell at craft shows, enter cash sales and card sales after each event. Keep the booth fee and related expenses with the event’s records so you can see whether that particular show was worth participating in.
Seven Bookkeeping Mistakes Wreath Sellers Should Avoid
- Counting deposits as revenue: Net payouts can hide processing fees and other deductions.
- Ignoring partial rolls: The full cost of a ribbon roll is not necessarily the material cost of one wreath.
- Mixing business and personal expenses: Missing details can make expenses and owner withdrawals hard to sort out.
- Forgetting shipping charges: Record what customers pay for shipping and what shipping actually costs you.
- Overlooking refunds: A refunded sale should not continue to appear as an ordinary completed sale.
- Assuming cash in the bank equals profit: Inventory purchases, unpaid bills, or money owed for taxes can create a different picture.
- Waiting until tax season: Unlabeled receipts and missing order reports take much longer to sort out months later.
Do You Need Bookkeeping Software to Sell Wreaths?
Not necessarily. If you sell only a handful of wreaths, a clearly organized spreadsheet may be enough to start. If you sell across several channels, process frequent orders, have employees, or manage more complex inventory, software or professional support may make sense.
Whatever system you choose, make sure it can show your gross sales, fees, expenses, and relevant inventory information; preserve the supporting documents; and help you reconcile transactions to bank records. A more expensive program is not a substitute for recording transactions consistently.
What Bookkeeping Records Should Wreath Sellers Save for Taxes?
Save documents that support income and expenses, such as customer invoices, receipts, sales summaries, marketplace statements, bank records, shipping receipts, inventory purchase invoices, and equipment purchase records. According to the IRS guidance on business recordkeeping, businesses may use a recordkeeping method suited to their operations, provided the books clearly show income and expenses and supporting documents are retained.
The time you must keep records depends on what they document. For many tax-return items the general federal period is three years, but exceptions can require longer retention; property and employment records have their own considerations. See the IRS explanation of how long to keep business records.
This article provides general business education for U.S. wreath sellers, not individualized accounting, tax, or legal advice. Rules about inventory, sales tax, owner pay, and deductions depend on your business structure, state, and chosen accounting method. Consult a qualified tax professional for your specific situation.
Keep Learning About Pricing and Running a Wreath Business
Bookkeeping becomes even more useful when you combine it with an intentional pricing system. Explore these related Sports Wreath Shop resources:
- How to Price Wreaths for Profit — estimate materials, labor, overhead, and desired profit before selling.
- How to Price Wreaths on Etsy for Profit — understand fees and shipping costs specific to Etsy orders.
- How to Start a Wreath Making Business — plan the selling side of your craft.
- Pricing & Profit Guides — browse more free financial help for wreath sellers.
- Wreath Maker Resource Center — find business, craft-show, and design guides in one place.
Final Thoughts
Bookkeeping does not have to be intimidating. Start by writing down what you sell, what you spend, and which supplies you use. Record fees separately, keep your receipts, and check your numbers before the month gets away from you.
As your business grows, your recordkeeping system can grow with it. What matters most is that your numbers help you make decisions: which wreaths are worth making, when to restock supplies, whether a craft show paid off, and whether your work is producing the income you hoped for.
Beautiful wreaths deserve a business that is financially organized behind the scenes.
Bookkeeping for Wreath Makers: Frequently Asked Questions
What Is the Easiest Way to Do Bookkeeping for a Wreath Business?
Begin with a sales log, an expense log, and a supply-cost log. Update them weekly, save receipts, and compare the totals with your bank and marketplace statements. A basic spreadsheet can be enough for a small operation if it captures the information clearly and consistently.
Do I Need an Accountant to Sell Handmade Wreaths?
You may be able to handle everyday recordkeeping yourself, especially with a small number of transactions. A tax professional can still be valuable for choosing an inventory-accounting method, understanding sales tax, business structure questions, and preparing tax returns.
Should I Record the Whole Etsy or Marketplace Sale or Just the Deposit?
Record the full applicable sales revenue, then record marketplace and payment-processing fees separately. Reconcile both to the deposit received. This avoids understating sales and hiding selling costs.
How Do I Track Ribbon and Deco Mesh Used in a Wreath?
Record the purchase quantity and cost, calculate a consistent cost per usable unit, and assign the amount actually used to each wreath. For example, a $18 ten-yard ribbon roll costs $1.80 per yard before any additional costs allocated to the roll; using 2.5 yards represents $4.50.
Are Unsold Wreaths an Expense?
Unsold wreaths usually represent materials or finished products still held by the business. Their tax treatment depends on the applicable inventory and accounting rules, including special options for qualifying small businesses. Keep records of the costs and consult a tax professional before assuming every purchase is immediately deductible.
Is the Money Left in My Bank Account My Business Profit?
Not necessarily. Your bank balance also reflects the timing of deposits, supply purchases, withdrawals, and unpaid expenses. A profit-and-loss report measures revenue and expenses under your chosen accounting method, while cash flow shows when money actually moves.
How Often Should Wreath Makers Update Their Books?
Weekly updates are a practical starting point for many small sellers. Review your profit and expenses monthly, and reconcile the records to supporting reports and account statements regularly. If you process many orders, more frequent updates may be helpful.