Simple Record Keeping for Pokemon Business

"I think I made money this month?" If you're not sure, you don't have a business—you have an expensive hobby. Let me show you dead-simple record keeping that actually works.

Why Track Everything?

Three compelling reasons:

1. Legal Reasons: Taxes and Business Expenses

IRS requirement: Track all business income and expenses

What happens if you don't:

• Can't deduct business expenses (lose money)
• No proof of income/expenses if audited (huge problems)
• Pay taxes on revenue instead of profit (overpay taxes)

What happens if you do:

• Deduct shipping, supplies, mileage (save money)
• Prove expenses if audited (protected)
• Pay taxes only on profit (pay correct amount)

Example: $10,000 revenue - $4,000 expenses = $6,000 taxable profit Without tracking: Pay taxes on $10,000 With tracking: Pay taxes on $6,000 Tax savings: ~$1,000

2. Business Reasons: Knowing What's Profitable

Questions tracking answers:

• Which cards make the most profit?
• Which sourcing methods work best?
• What's my average profit margin?
• Am I actually making money?

Without tracking: Guessing With tracking: Knowing

My story: Year 1, I thought I made $2,000. After tracking, actual profit was $700. Tracking showed me which cards were secretly losing money.

3. Personal Reasons: Not Losing Money or Inventory

Common scenarios without tracking:

• "Did I already sell this card?"
• "What did I pay for this?"
• "Where is that $200 card I bought?"
• "How much do I have in inventory?"

All preventable with simple systems.

What Happens When You Don't Track

Real example from student:

• Bought $5,000 in Pokemon cards over 6 months
• Sold cards "here and there"
• No tracking whatsoever
• Thought he made money
• Actual result: Lost $800

Why? Couldn't remember what he paid, sold cards below cost, lost inventory to disorganization.

Tracking would have prevented this.

Simple Tracking Methods

Method 1: Basic Spreadsheet (My Recommendation)

Setup time: 15 minutes Maintenance: 5 minutes per day Cost: Free

Columns you need:

• Date purchased
• Card name
• Set
• Condition
• Purchase price
• Date sold
• Sale price
• Fees
• Shipping cost
• Net profit

Formula for profit: =Sale price - Purchase price - Fees - Shipping

Download: I provide free template in course

Method 2: Inventory Apps

Good options:

• TCGPlayer Seller App (if selling on TCGPlayer)
• Card Binder (inventory management)
• Google Sheets (free, cloud-based)

Pros: Mobile access, some automation Cons: Learning curve, subscription costs

My usage: Spreadsheet for tracking, app for quick inventory lookups

Method 3: Hybrid System (Advanced)

What I actually use:

• Spreadsheet for financial tracking
• Photos in organized folders for inventory documentation
• Physical filing system for receipts
• Cloud backup of everything

Why hybrid? Best of all worlds, redundancy prevents loss

Setting Up Your Tracking System (Step-by-Step)

Step 1: Choose Your Tool

Start with: Free Google Sheets spreadsheet Why: No cost, accessible anywhere, easy to learn

Step 2: Create Your Template

Essential tabs:

• Inventory (cards you own)
• Sales (cards you've sold)
• Expenses (business costs)
• Summary (profit/loss calculation)

15 minutes to set up once, saves hours forever

Step 3: Establish Daily Routine

Every day (5 minutes):

• Log any purchases
• Log any sales
• Update inventory status
• File receipts

Every week (15 minutes):

• Review what sold
• Calculate weekly profit
• Plan next week's listings

Every month (30 minutes):

• Run profit/loss report
• Review best/worst performers
• Adjust strategy

Step 4: Photo Documentation for Valuable Cards

For cards $20+:

• Front photo
• Back photo
• Close-up of any flaws
• Photo of purchase receipt

Why? Insurance, condition disputes, resale documentation

Storage: Organized folders by month/set

Simple Filing System for Receipts

Physical receipts:

• Monthly accordion folder
• Label by month
• Keep for 7 years (IRS requirement)

Digital receipts:

• Email folder "Pokemon Business Receipts"
• Organized by month
• Cloud backup

Pro tip: Photograph physical receipts (receipts fade)

Daily vs Weekly Tracking Routines

Daily Routine (5 minutes)

Morning:

• Check for overnight sales
• Log any sales from previous day
• Update inventory

Evening:

• Log any purchases made
• File receipts
• Update tracking sheet

Consistency > Perfection

Weekly Routine (15 minutes)

Sunday evening:

• Review week's sales
• Calculate weekly profit
• Identify best sellers
• Plan next week's listings
• Update inventory counts

Why weekly? Catches errors while memory is fresh

Common Record Keeping Mistakes

Mistake 1: Waiting Too Long to Record

Bad: Record transactions once per month Problem: Forget details, lose receipts, make errors

Good: Record within 24 hours Result: Accurate, complete records

Mistake 2: Incomplete Information

Bad: "Sold Charizard - $50" Problem: Which Charizard? Which set? What condition? What fees?

Good: "Sold Base Set Charizard Holo NM - $50 sale, $7 fees, $3 shipping = $40 net" Result: Complete data for analysis

Mistake 3: No Backup System

Real story: Student's laptop crashed, lost entire year of records

Fix: Cloud-based tracking (Google Sheets, Dropbox, OneDrive)

Mistake 4: Overcomplicating It

Don't:

• Track every penny obsessively
• Create 50-column spreadsheets
• Use complex accounting software day one

Do:

• Track essentials: buy price, sell price, fees
• Keep it simple
• Upgrade later if needed

Mistake 5: Mixing Personal and Business

Bad: Personal Pokemon collection in same spreadsheet as business inventory Problem: Confused records, tax issues

Good: Separate tracking for business vs personal Result: Clean records, clear taxes

Sample Tracking Entry

Purchase:

• Date: 11/06/2025
• Card: Charizard ex (Scarlet & Violet Base #6)
• Condition: Near Mint
• Source: eBay
• Purchase Price: $8.50
• Shipping: $1.00
• Total Cost: $9.50

Sale:

• Date Sold: 11/10/2025
• Platform: Mercari
• Sale Price: $15.00
• Mercari Fee: $1.50
• Shipping Cost: $1.25
• Net Revenue: $12.25
• Profit: $2.75

Time to record: 90 seconds

When to Upgrade Your System

Start with: Basic spreadsheet

Upgrade when:

• Selling 100+ cards per month
• Managing inventory over 500 cards
• Needing real-time inventory updates
• Multiple people need access
• Tax complexity increases

My progression:

• Year 1: Simple spreadsheet
• Year 3: Advanced spreadsheet with formulas
• Year 5: Hybrid system with inventory app
• Year 7: Custom database

Don't overcomplicate early. Simple works.

Tools I Actually Use

Tracking: Google Sheets (free, cloud-based) Photos: Google Photos (organized albums by month) Receipts: Dropbox folder + physical accordion file Backup: Automatic cloud backup

Total cost: $0 per month

The Bottom Line

Record keeping isn't exciting, but it's essential.

5 minutes per day prevents:

• Lost money
• Lost inventory
• Tax problems
• Business confusion

5 minutes per day enables:

• Accurate profit tracking
• Tax deductions
• Smart business decisions
• Stress-free audits

The successful Pokemon sellers I know? They all track meticulously.

Ready to Set Up Your Tracking System?

This is Module 2.2 of Week 2 in the Pokemon Business Startup Course.

Complete course includes:

• Ready-to-use tracking spreadsheet template
• Photo organization system
• Receipt filing checklist
• Video walkthrough of setup

Enroll in the Pokemon Business Startup Course →

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Module 2.2 of Week 2 - Pokemon Business Startup Course