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Posted by Mr . . on July 17, 2006, 8:28 pm
Please log in for more thread options One thing to think of doing too would be to account for each item in the lot
of goods purchased and reflect each item cost individuallly... say 100 items
for 200.00 this would be 2.00 each, then you find you need to get rid of 80,
if you deem the items to be somewhat still useful you can donate them to a
charity (goodwill, salvation army, etc) get receipts and account for $160 in
goods donated & possibly more if you use the It's deductible software to
help determine 'actual value of goods donated'.
This could do two things for you. 1. reduce your item cost for the few
items you choose to keep and resell, since each item in the example only
cost you $2.00 each if you sold them for 20 you'd reflect an $18 increase
rather than the way mentioned below of counting the cost only for the items
you keep which would raise the cost of item from $2 to $20 if you only kept
10, which would yield a lower profit margin.
2. Your donations to the charities could be tax deductible writeoffs, so
you'd be able to reduce your taxable income.
just some thoughts... exactly how practical they are from a professional
accounting / IRS standpoint is beyond me.... but it seems logical.
Mr.
>
> JM wrote:
> > I've been in business for one year, just now starting my second year. I
did
> > not use QB my first year. Rather, I kept up with everything on Excel
> > spreadsheets, and did manual quotes and invoices.
> >
> > I'm in telecom and computer/networking services, and so far I have not
> > maintained inventory on the books. I keep parts around, but I've always
> > shown everything as COGS against my orders. Tracking cost is getting
tough,
> > because I am starting to buy out-of-service telecom and computer parts
in
> > lot bids. It's kind of like salvage, in that I take in a bunch of stuff
I
> > don't want to get the stuff I do want. Then I'm never quite sure where
and
> > exactly how to allocate the cost.
> >
> > I have been using 5 main part numbers for my services: CompServ1
(in-house
> > computer repair services); CompServ2 (on-site computer repair services);
> > CompServ3 (custom computer building services); NetServ (network
services);
> > and TelcomServ (telecom services). On my invoices I show these in total
> > number of hours. Then I itemize the parts I use and bill for them
> > individually.
> >
> > With this very basic (let me know if it's *too* basic to be of any use)
> > outline of my business, what are some general tips for setting up QB?
> >
> > Let me know what info I left out.
> >
> > thank you,
> >
> > jm
>
> jm:
>
> You will probably want to create some additional Parts/Items to account
> for the physical items you are purchasing & reselling.
>
> I assume that some of what you buy will be discarded/recycled, and you
> will want to get rid of that without fouling up your Inventory books at
> year end. If so, you need to assign a cost to each item you purchase.
>
> Let me know if I am unclear with this - I'm not sure how much info you
> need/want.
>
> Tony
>
>
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