Guest guest Posted December 19, 2005 Report Share Posted December 19, 2005 Hey all, Hope everyone is surviving the week before Christmas and getting lots of shopping done and family time in. Up until now I have been a web developer and I am getting ready for my first " year end " where I actually have inventory!! I was wondering if anyone knows if " inventory " means just the finished products I have ready to be sold or if it also includes all of the ingredients I have sitting around waiting to become products. I ask b/c that makes a huge difference. I am loathe to try to find the answer from the less than friendly IRS site ... so thought I'd ask here first if anyone knows off the top of their head. If not, I'll go brave the IRS site. Thanks! ~Bonnie PS: I have changed identities! I am phasing out my old business name " Walker Web Works " and email addresses in favor of my new one " Snowboard Mommy Productions " so I may appear new, but really I'm not. You can still feel free to shower me with welcome messages as I can never get enough attention. LOL. Quote Link to comment Share on other sites More sharing options...
Guest guest Posted December 19, 2005 Report Share Posted December 19, 2005 Inventory is everything from glass bottles to fixings, anything and everything. So. you need to count completed and everything else that you use to make said finished products. K On 12/19/05, Bonnie Walker <bonnie wrote: > > Hey all, > > Hope everyone is surviving the week before Christmas and getting lots of > shopping done and family time in. > > Up until now I have been a web developer and I am getting ready for my > first > " year end " where I actually have inventory!! I was wondering if anyone > knows if " inventory " means just the finished products I have ready to be > sold or if it also includes all of the ingredients I have sitting around > waiting to become products. I ask b/c that makes a huge difference. I am > loathe to try to find the answer from the less than friendly IRS site ... > so thought I'd ask here first if anyone knows off the top of their head. > If > not, I'll go brave the IRS site. > > Thanks! > > ~Bonnie > > > PS: I have changed identities! I am phasing out my old business name > " Walker Web Works " and email addresses in favor of my new one " Snowboard > Mommy Productions " so I may appear new, but really I'm not. You can still > feel free to shower me with welcome messages as I can never get enough > attention. LOL. The information contained in these e-mails is not a substitute > for diagnosis and treatment by a qualified, licensed professional. > > > Step By Step Instructions For Making Herbal Labna Cheese! So easy, SO > yummy! > http://www.aromaticsage.com/cz.htm > > > To adjust your group settings (i.e. go no mail) see the following link: > /join > Quote Link to comment Share on other sites More sharing options...
Guest guest Posted December 20, 2005 Report Share Posted December 20, 2005 Thanks. I suppose I have to now go look up how much I paid for a full bottle of soy wax and figure out how much the 0.69053457 of a bottle i have left is worth. And I thought we weren't going to have any fun at New Year's b/c my husband doesn't want to go out! Guess I need to add yet another worksheet to my already overly complex excel file. Don't do what I do and be both a web developer with a proprietary online service and a producer of physical products; there is no financial software designed to even come close to helping you manage it (I suppose it's worth a look just *in case* QuickBooks has added any features to help you track affiliate income and other things where you " earn " money but don't actually get paid till you've hit a minimum payout). Anyway, I digress. Thanks for the help. ~B - " Woobey Queen " <WoobeyQueen Monday, December 19, 2005 3:14 PM Re: (OT?) Year end inventory questions Inventory is everything from glass bottles to fixings, anything and everything. So. you need to count completed and everything else that you use to make said finished products. K Quote Link to comment Share on other sites More sharing options...
Guest guest Posted December 20, 2005 Report Share Posted December 20, 2005 Mon, 19 Dec 2005 15:14:30 -0800 Woobey Queen <WoobeyQueen writes: > Inventory is everything from glass bottles to fixings, anything and > everything. > > So. you need to count completed and everything else that you use to > make > said finished products. This is what I always understood, too . . . the unfinished ingredients, supplies, etc. would be valued at their cost, but what about the finished products? Do you tally them at cost or retail value? Thanks, Roxanne Quote Link to comment Share on other sites More sharing options...
Guest guest Posted December 21, 2005 Report Share Posted December 21, 2005 My guess is that you value finished products at cost b/c retail is a very subjective thing ... someone correct me if i am wrong!! - <gentlelake Tuesday, December 20, 2005 6:21 AM Re: (OT?) Year end inventory questions Mon, 19 Dec 2005 15:14:30 -0800 Woobey Queen <WoobeyQueen writes: > Inventory is everything from glass bottles to fixings, anything and > everything. > > So. you need to count completed and everything else that you use to > make > said finished products. This is what I always understood, too . . . the unfinished ingredients, supplies, etc. would be valued at their cost, but what about the finished products? Do you tally them at cost or retail value? Thanks, Roxanne Quote Link to comment Share on other sites More sharing options...
Guest guest Posted December 21, 2005 Report Share Posted December 21, 2005 " My guess is that you value finished products at cost " You sure do! You don't want to pay tax on teh retail value! Gayla Roberts Always Enough Ranch Acampo, California Check out our SALE PAGE at www.bouncinghoofs.com/alwaysenoughhobbysale.html A day without Bill Barnhill is like a day without sunshine! goatclearing http://coloredboers.home.att.net/always.html There is no failure except in no longer trying. Elbert Hubbard Dial Broadband has arrived Nationwide! Up to 5 times faster than traditional dialup connections from $13.33/month! See the demo for yourself at <a href= " http://www.BigValley.net " >www.BigValley.net</a> Quote Link to comment Share on other sites More sharing options...
Guest guest Posted December 21, 2005 Report Share Posted December 21, 2005 ________________________________ On Behalf Of Gayla Roberts Tuesday, December 20, 2005 7:38 PM Re: Re: (OT?) Year end inventory questions " My guess is that you value finished products at cost " You sure do! You don't want to pay tax on teh retail value! Gayla Roberts Hi Gayla, You don't pay income tax on inventory . . . It is valued as an inventory asset of your business and that value is carried over from year to year based on an inventory count at fiscal year end. You only pay income tax on " income " . A business doesn't pay tax on retail or wholesale (that is how you price and sell to your customers) . . . You pay tax on your " net " income (retail/wholesale/distributor - doesn't matter) . . . Net income is gross income less the cost of goods sold (ingredients, packaging, labor). Then, there is the cost of overhead (telephone, office, advertising, legal, CPA, etc.) which is also deducted from gross income before you get to actual taxable net income. Other purchases (assets) are carried as " capital " (furniture, fixtures, warehouse if owned) or " depletion " (such as cases of computer paper, toner, pencils, cleaning supplies). These contribute to the value of your business, included with inventory of products for sale. Capital equipment is assessed every year and depreciated in value as they wear out. Depletion inventory is simply used and taken as a deduction when it is gone. Hope this helps clear up the concept of taxable income and valuation. Be well, Marcia Elston, Samara Botane, http://www.wingedseed.com/katrina.htm " First of all, cultivate a contented spirit; a garden is a good place to begin. " Quote Link to comment Share on other sites More sharing options...
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