Yet, to get to the real nitty-gritty of your business the reporting can be lacking. It has your basic P+L, Balance Sheet, and other accounting reports. The reporting on the software can be a little limited. Payroll wasn’t included but was a cheap additional. Free and allowed us to sync with our bank accounts. Key Accounting Conceptsįull Disclosure – Used this software 2 years ago. Calculate the labor costs involved for manufacturing the goods. This tells you the value of the goods available during the period. Add the value of the beginning inventory to the cost of purchases during the current accounting period. If there is a markup, the income category is “reimbursed expense”, which isn’t helpful for year-end accounting. If entered at cost, the balances zero out in the reporting. You purchase the shirts for $6 and sell them for $12. Mark $50 for the price of the inventory line, and the shipping amount on the shipping line.ĭcolum23, COGS is a special type of expense but still just an expense.Under the Expenseaccount type, click on the Cost of Goods account.In a defined period, you cycle through the entire inventory.Create a journal entry that debits your CoGS account and credits your Inventory account for $10.You enter an income transaction for $20 and choose Sales as the category. ![]() Add a new operating expense or leave as is and just group it with the general and admin expenses. ![]() You can either re-categorize the items there and set up an expense under Accounting/Chart of Accounts. Cost of goods sold is a an expense category typically used by manufactures who produce an item for sale. If you’re adding a bank or credit card account, name the account after what the account is called in real life so that it’s easy to recognize. If you’re adding an income or expense category, try entering a name that describes what you buy or sell.
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