Etsy & Handmade · Edmonton
Handmade business bookkeeping in Edmonton, market to online.
For Edmonton makers who sell at farmers markets, craft fairs and online: how to handle inventory, cost of goods sold, Square sales at your table and GST.
By the Plum team- Updated Oct 2026
- 7 min read
- Materials become an expense when the product sells, not when you buy them.
- Count and value your inventory at year-end. It's how you get cost of goods sold right.
- Record Square sales and fees separately, and log cash sales the same day.
- GST counts all your sales together: markets, online and wholesale.
- Price each product from its real cost, including fees and your time.
Good handmade business bookkeeping in Edmonton brings every sales channel into one clear picture. And this city has a busy maker scene: on any Saturday you'll find candle makers, potters, jewellers and bakers at the Old Strathcona Farmers' Market, at City Market Downtown, at summer markets along 124 Street and at craft fairs from St. Albert to Sherwood Park. Most of those makers also sell online, wholesale or on consignment.
This guide covers the parts that make maker businesses different: inventory, cost of goods sold, market sales and GST.
1Cost of goods sold: the key to handmade business bookkeeping in Edmonton
When a service business buys supplies, it usually expenses them right away. Product businesses work differently. The wax, wicks and jars you buy in November for candles you'll sell in December aren't an expense when you buy them. They become an expense, called cost of goods sold, when the candle sells.
The year-end calculation is simple:
| Step | Example |
|---|---|
| Inventory at the start of the year | $2,000 |
| Plus materials bought during the year | $9,000 |
| Minus inventory at the end of the year | $3,000 |
| Cost of goods sold | $8,000 |
In this example, $1,000 of this year's spending is sitting on your shelves as stock. It'll become an expense next year when those items sell. That's why a big December materials order doesn't drop your tax bill the way many makers expect.
2Counting your inventory
At the end of your fiscal year, which is December 31 for most sole proprietors, count what you have and put a cost on it. For a small maker, that doesn't need fancy software:
3Square sales at market tables
Markets are busy, cash and card mix together, and the last thing you want to do at 4 pm is bookkeeping. A few habits make it painless:
- Set up each market as a location in Square, or use a tag, so you can see which markets earn their table fee.
- Ring up cash sales in Square too, marked as cash. Then one report shows the whole day.
- Record gross sales and fees separately. Your Square payout is sales minus fees, not your income.
- Count your float before and after so your cash sales reconcile.
- Deposit cash regularly rather than letting it build up at home.
If your Square reports and bank deposits never seem to line up, our guide to Square deposits that don't match explains why.
Online sales and other channels
Most makers also sell through Etsy, Shopify or their own website. Each has its own fees and payout timing. Record each channel's monthly sales and fees as separate lines so you can compare them. You might discover that your best market weekend nets more than a month of online sales, or the reverse. For platform specifics, see our guide to Etsy seller taxes in Canada.
4Wholesale and consignment
Selling through local shops is a great way to grow, but the two common arrangements are recorded very differently.
Wholesale
The shop buys your products outright, usually at a discount from retail. You invoice the shop, record the sale, and the items leave your inventory. If you're GST-registered, charge GST on the invoice.
Consignment
The shop displays your products but only pays you when they sell, taking a commission. Until an item sells, it's still your inventory, even though it's sitting in someone else's store. When the shop sends your monthly statement, record the full sale price as revenue and the shop's commission as an expense.
Track what you've placed with each consignment shop, item by item. At year-end, those items belong in your inventory count. It's easy to forget a box of earrings sitting in a boutique in St. Albert. Ask each shop for a stock report before December 31 so your count matches theirs, and note any items that were lost or damaged while on consignment.
A monthly routine for makers
- Record each market's Square sales and fees.
- Enter online platform statements for the month.
- Log materials purchases and consignment statements.
- Reconcile your bank and card accounts.
- Set aside money for GST and income tax.
5GST for makers
For the $30,000 GST threshold, CRA looks at all your taxable sales together over four consecutive calendar quarters, or within one quarter. Markets, Etsy, your website and wholesale orders to local shops all count. Once registered, you charge 5% GST in Alberta, with no PST.
Food makers should take extra care: some basic groceries are zero-rated, while snacks, candy and many prepared foods are taxable. Check how your specific products are treated before you set prices.
Deductions makers often miss
- Market table and craft fair booth fees
- Tents, tables, displays and signage
- The business share of driving to markets and supply runs
- Packaging, bags and business cards
- Studio space, or home workspace if you meet CRA's rules
6Use your books to price better
Once you know your real cost of goods, your fees and your table costs, you can price with confidence. Take that $38 mug. Materials cost $9, Square or platform fees take roughly a dollar or two, and packaging adds another dollar. If it takes you 40 minutes to throw, trim, glaze and fire, and you want to earn $30 an hour, your time alone is $20. Suddenly $38 leaves very little for table fees, travel and the mugs that crack in the kiln. Many makers discover they've been charging for materials but not for their time. Clear books fix that, and they make it far easier to decide which products to drop, which to raise, and which markets are worth a Saturday.
Plum works with makers and market vendors across Edmonton, St. Albert, Sherwood Park and Spruce Grove. If you'd like help setting up inventory and sales tracking, book a quick call.
7Questions people ask
How do I calculate cost of goods sold for a handmade business?
Start with the value of inventory at the beginning of the year, add materials you bought for products, then subtract the value of inventory left at year-end. The result is the cost of what you actually sold.
Do I need to count inventory as a small maker?
Yes. If you make or resell physical products, CRA expects you to value your inventory at the end of your fiscal year, which for most sole proprietors is December 31. A careful count with costs is enough for most small makers.
Do I charge GST at farmers markets in Alberta?
Only once you're registered. You must register when your total taxable sales across markets, online and wholesale pass $30,000 over four consecutive calendar quarters, or in a single quarter. Some basic groceries are zero-rated, so food makers should check how their products are treated.
Are market table fees tax deductible?
Yes. Market stall and table fees, craft fair booth fees, display equipment, signage and the business share of driving to markets are all deductible business expenses.
How should I track Square sales at markets?
Name each market as a separate location or use item categories in Square, then record gross sales and Square's fees separately in your books. Record cash sales the same day so nothing gets missed.
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Book a free 15-min callThis article is general information for Alberta businesses and isn't tax or legal advice. Rules and thresholds change, so confirm your situation with your accountant or CRA.