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kimpont
Level 1

Categorizing Revenue and Expenses without Using Inventory

I have a potential client who sells candles.  About 4-6 components comprise a candle.  Can I just expense all of her purchases that would usually go into inventory?  I want to make this as simple as I can for them, but not sure I should be omitting the inventory part of her books.  She's a cash basis business.  I think I'm overthinking this.  Thank you.

2 Comments 2
Rustler
Level 15

Categorizing Revenue and Expenses without Using Inventory

inventory is what you buy and stock to sell or to make things to sell

 

QBO does not do assemblies, so the best you could do is a bundle item listing all the items and qty that make one candle.

 

it also depends on price and qty and usage, it is a judgement call basically.

kimpont
Level 1

Categorizing Revenue and Expenses without Using Inventory

Yes, I work with inventory accounting in my other job, but we use Sage which is very clean and makes sense.  I called QB and asked one of their specialists, and they reassured me that QB can absolutely account for inventory.  Obviously, not the way I'm used doing it with an accounting system like Sage.

 

Thank you for your reply, I appreciate it.

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