giving gifts from my business

mikeyco · ‎December 22, 2021

I have a woodworking business and I made a couple of items that I gave away as gifts. I was wondering how I would account for these since it did use up some of my inventory that could have been used for products that could have been sold. If possible how would I record them in Quickbooks Self employed since I know that differs from the other Quickbooks sometimes.

Thank you

Mike

KimMcCPA · ‎December 22, 2021

@mikeyco ,

For personal gifts that use business inventory, here's the accounting, regardless of what platform is used:

Receivable from owner XX (increase of an asset)

Inventory XX (decrease of an asset)

When you replenish that inventory, use personal funds, and reverse the transaction.

View solution in original post

KimMcCPA · ‎December 22, 2021

@mikeyco ,

For personal gifts that use business inventory, here's the accounting, regardless of what platform is used:

Receivable from owner XX (increase of an asset)

Inventory XX (decrease of an asset)

When you replenish that inventory, use personal funds, and reverse the transaction.

mikeyco · ‎December 22, 2021

Thank you for the help.

FritzF · ‎January 12, 2022

Hi, @KimMcCPA.

I have reviewed the solution you’ve shared and it's correct and accurate.

Thank you for sharing your inputs to help address the issue.

We love to see members supporting one another! Have a great day.

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giving gifts from my business