Inventory & Taxes

[Kalleberg]

I've searched but couldn't find a similar topic.....

For tax purposes & determining your cost of goods sold. Do you somehow determine all the candy in the machines at the end of the year and consider that to be your inventory value or do you just count the inventory on your shelves at home to be your inventory?

Or does it really even make a difference?

[havending]

I've searched but couldn't find a similar topic.....

For tax purposes & determining your cost of goods sold. Do you somehow determine all the candy in the machines at the end of the year and consider that to be your inventory value or do you just count the inventory on your shelves at home to be your inventory?

Or does it really even make a difference?

All inventory is counted per irs rules. Keep it low at year end

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[Kalleberg]

Thanks. It was a bit more work but I was able to put together a spreadsheet to track beginning inventory, purchases, COGS monthly by product and damages/loss/spoilage. Ugh - a pain but thankfully I'm still very small.

[musser]

Kalleberg if you stay in the business you will thank yourself many many times in the future for getting an early handle on tax requirements. Hats off to you! Learn all you can as you grow.

[treadmill]

I just take what I have on hand at the end of the year and use that. That's the way I started and will continue to do that. Nice and easy.