Before the Auction: Keeping Records continued ...

The Need for Speed

Who has the time to dig through reams of printed notes, receipts, and so on? Spending too much time looking for something means lost opportunity, plain and simple. Keep your auction records handy.

Establish a filing plan, be it hard copy or electronic, and stick to it. Use clearly marked files to store and retrieve information. Moreover, your ability to respond quickly to buyers' questions about a transaction will head off trouble and increase their confidence in you.

Someone's Been Sleeping in My Bed

Just a quick note: Be sure you have exclusive access to your auction records. Don't let someone else in the house unwittingly reorganize or disrupt your organizational system. And, if you work with a partner, make sure you both agree on how to organize records. Also, you'll both need to discuss any changes.

The Taxman Cometh

Don't forget, auction income is taxable. So, if you're not convinced that you need to keep good sales records, the prospect of a tax audit should be all the motivation you'll need. Be sure to have a tax advisor recommend ways to maintain proper sales information. Although you can choose not to claim your auction income, remember as online auctions rake in billions per year don't be surprised if someone comes knocking on your door.

In Times of Trouble

Remember, too, good auction records can help unsort a snag in a transaction. For example, a buyer might contact you weeks or months after a deal closed. For whatever reason, the ability to quickly present detailed records and accounts of the transaction will be your best tool in proving that you held up your end of the bargain.

Your Customer Base

Any good businessperson will tell you that a strong customer base can help ensure long-term success. Avoid using your customers' contact information (address, email, phone number) irresponsibly or inappropriately. Keep track of your buyers so that you can recognize a good repeat customer or a potential deadbeat. Keep track of anyone who expresses interest in your items. The Internet is ideal for such tracking. Close tracking can leave both you and your customers satisfied.

Dennis Prince is the author of Online Auctions at eBay: Bid With Confidence, Sell With Success. He has been an active buyer and seller at various online auction sites since 1995. Send him email at dlprince@bigfoot.com.