Making a living in the Sea-to-Sky corridor? You’re basically living the dream. You get to create amazing things—pottery, art, jewelry—with Whistler’s peaks as your backdrop and sell them to people all over the world. But let’s be real. Just like a rooty trail in Squamish can trip you up, a messy financial path can totally wipe out your business.
It’s so easy to get lost in the fun of making stuff and just toss all your receipts in a box. We get it. But ignoring your numbers is the fastest way to turn your passion project into a massive headache. Let’s dive into the five biggest bookkeeping blunders local artisans make and how you can easily sidestep them.
Mistake #1: Mixing Your Business and Personal Bank Accounts
This is the classic, number-one mistake. You’re at the Squamish market, you need a new display stand, and you just tap your personal debit card. Easy, right? Then a big Etsy payment lands in the same account you use for groceries and your bike park pass. Sound familiar?
When you mix your money like this, it’s a recipe for disaster. Why is it such a big deal?
- You have no clue if you’re actually making money. Seriously. When business cash and personal spending are all tangled up, it’s impossible to tell if you’re profitable or just running an expensive hobby. You’re flying blind.
- The Canada Revenue Agency (CRA) hates it. If the CRA ever comes knocking for an audit, a jumbled account makes it nearly impossible to prove what was a legitimate business expense. That can lead to denied deductions and a much bigger tax bill than you were expecting. Yikes.
The Fix: This one’s a game-changer, and it’s super simple. March into your bank (or just go online) and open a separate business chequing account and a business credit card. That’s it. All your business income goes in, and all business expenses come out. Boom. Instant clarity.
Mistake #2: Messing Up BC Sales Tax (GST & PST)
Sales tax feels like a total maze, doesn’t it? In British Columbia, we’ve got two to worry about: the federal GST and our own Provincial Sales Tax (PST).
Lots of new sellers hear about the “small supplier” rule for GST and breathe a sigh of relief. You don’t have to register for or collect GST/HST until you make more than $30,000 in revenue over four straight quarters.
But hold on. Here’s the part that trips up almost everyone in BC: PST is a completely different beast. The rules are way stricter. If you’re selling taxable goods (like your amazing creations) in BC, you generally need to register and start collecting PST from your very first sale. There’s no $30k cushion to hide behind.
The Fix:
- Watch your revenue like a hawk. You need to know exactly when you’re getting close to that $30,000 GST number.
- Register for a PST number with the BC government right away. If you’re selling to customers in BC, it’s not optional.
- Let your e-commerce platform do the heavy lifting. Use the built-in tax settings on Etsy or Shopify to automatically add the right taxes. It’ll save you from a world of spreadsheet pain.
Mistake #3: Guessing Your Expenses and Profit
Awesome! You just sold a handmade necklace for $100. But how much of that was actual profit? If you can’t answer that question in about five seconds, you might be making this mistake.
When you don’t accurately track your Cost of Goods Sold (COGS)—the direct costs of making your product—or your other business expenses, you’re just guessing at your profit. You’re also probably missing out on a ton of tax deductions, which is like leaving free money on the table.
The Fix: Get organized! Start tracking every single thing you buy for your business. A simple spreadsheet is fine to start, but bookkeeping software makes it even easier. Don’t forget these common write-offs for creators:
- Raw materials: Clay, beads, wood, paint—you name it.
- Shipping supplies: Boxes, bubble wrap, tape, and mailers.
- Platform fees: Those pesky Etsy listing fees or your Shopify subscription.
- Marketing costs: Any ads you run or fees for market stalls.
- Home office expenses: A portion of your rent, hydro, and internet if you have a dedicated workspace.
Mistake #4: Ignoring What Platform Fees Are Really Costing You
Etsy and Shopify are fantastic for reaching customers far beyond Pemberton. But they don’t work for free. Their fee structures can be confusing, and if you’re not paying close attention, they’ll quietly nibble away at your profits until there’s not much left.
You’ve got listing fees. Transaction fees. Payment processing fees. Ad fees. It adds up so fast! Just looking at the final number that gets deposited into your bank account is a huge mistake, because it doesn’t show you how much was taken out before you ever saw a dime.
The Fix: Once a month, log in to your sales platform and pull the financial reports. Look for the detailed breakdown of all the fees they charged you. Record these as a business expense. Even more important, use this info to gut-check your pricing. Is that best-selling item of yours still profitable once you subtract all those fees? You need to know.
Mistake #5: Only Looking at Your Books at Tax Time
The final blunder is the big one: waiting until April to frantically dig through a year’s worth of receipts. Your business finances are not a once-a-year problem. Doing that is like trying to hike the Chief blindfolded—you’re going to have a bad time. You need to check in with your numbers regularly to make smart decisions.
The Fix: Set aside an hour or two every month. No excuses. Use this time to look at a simple Profit & Loss (P&L) statement. This report is magic. Your bookkeeping software can create it in seconds. It just subtracts all your expenses from your total income and shows you your net profit (or loss). It’s the ultimate report card for your business, helping you answer questions like:
- Am I actually making any money?
- Which of my products are the real winners?
- Are my shipping costs creeping up too high?
Looking at this report turns scary numbers into your most powerful tool for steering your business toward success.
Don’t Guess, Get It Right
Navigating the financial side of your creative business can feel overwhelming, but it doesn’t have to be. Avoiding these common mistakes puts you miles ahead of the competition and turns your passion into a truly profitable venture.
While these tips are a great starting point, getting expert advice can save you a ton of time and stress. Ready to get your books in order and focus on what you love? Talk to an accountant who gets it.
Frequently Asked Questions
As a small Etsy seller in Squamish earning less than $30,000, do I still need to worry about sales tax?
Yes, you absolutely do! While you’re probably off the hook for the federal GST until you hit that $30,000 revenue mark, the BC Provincial Sales Tax (PST) is a different story. For most people selling physical goods like crafts or art to customers inside BC, you need to register for and collect PST from day one.
Can I claim a portion of my Whistler home rent as a business expense if I make my products at my kitchen table?
This one’s tricky. The CRA has specific rules. To claim home office expenses, your workspace has to be either your main place of business or a space you use only for your business on a regular basis. A kitchen table that you also eat at usually won’t qualify.