simple business but I am confused

scubagirl65

2 of us are running this small ( work from home) we buy the product at our cost and sell it retail for a different cost. We don't have a store. We order - pay shipping, importation, and cost of goods. We added all that into our price and we sell small amounts of things.
We both paid a set amount to get into this business which I originally put in as a negative in owner equity.
I enter in a customer and an invoice for what they bought. Enter in the payment into Cash on Hand. Then I take cash on hand and split it into the 2 equity accounts. We split everything 50/50 so when we buy the product we split the cost and when we sell we split the income.
I know I am doing this wrong. It just does not look right.
We are talking about hiring an accountant. We have an international business. We sell in the USA and then in Mexico. Most of our business is in Mexico however we do have a few customers in the USA.

We are starting to gain momentum and I need this right - we have very little expenses - web hosting, domain name cost but we want to start writing things off which we never did in the past --all the airfares and then we would bring the product back to save on shipping etc
Help - where did I go wrong in the setup

Thanks
R

Alexia

Hi @scubagirl65.

I'm not entirely sure what questions you need answered. If you're asking about how to set up your business to accurately report taxes, I do recommend you talk to an accountant. It's good practice to do so regardless of your objective, especially if you're new at this.

If you're looking for a guide to help you get started, I do have something to offer. We recently published a guide called Fearless Accounting. It might be just what you're looking for.