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BrittneyA
Level 1

COGS vs Regular Expense Account for Supplies and Materials of Electrical Company

My husband owns his own electrical company.  I have been back and forth about whether to use COGS or regular expense account for the supplies and materials purchased.  To me, there are no COGS in this instance.  He does not have any goods to sell.  He repairs/upgrades electrical issues in both residential and commercial buildings.  So to me, this would not be the same as a contractor who is building/upgrading to sell a home.  This is strictly services only. 

2 Comments 2
MirriamM
Moderator

COGS vs Regular Expense Account for Supplies and Materials of Electrical Company

Thanks for reaching out to us, BrittneyA,

 

Let me share information on how to record Cost of Goods Sold. 

 

Currently, QuickBooks Self-Employed does not support Cost of Goods Sold in which the specific category is unavailable.  However, if the transaction is taxable and you wanted to claim it as deductible, you may tag it under "Other business expenses".

 

Our categories are matched with what the IRS has for Schedule C. For tax purposes, we highly encourage you to consult with your Accountant or Tax Professional for the verification.

 

If there's anything else you need help with, please feel free to reach back out.

 

 

 

 

MLEOWNER
Level 1

COGS vs Regular Expense Account for Supplies and Materials of Electrical Company

Hello Brittney,

 

I am reaching out to you after reading your post here not to help you but hoping you can help me. I to am an electrical contractor. I am in search of an bookkeeper and CPA who understands our business. I wondered if you found someone to work with that understands our services and how to properly categorize the expenses and income of an electrical services contractor? Would you be willing to share their contact info if you did find someone?

 

I really appreciate your time and helping a fellow QB community member.

 

John Wilson

Magnolia Lighting & Electrical

Spring, TX

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